HMRC will require taxpayers to revert to paper P87 Forms to claim tax relief on employment expenses from 14.10.24.

HMRC are increasing checks and regulations around claiming tax relief on employment expenses that are not already reimbursed by your employer.

Where expenses are below £2,500 and the individual does not complete a Self Assessment Tax Return claims can be submitted on a P87 Form. The tax relief is then provided through PAYE.

From 14.10.24, however, Employees must revert to using a paper P87 for (rather than the online or telephone option) and provide additional evidence. HMRC’s intention is to try to prevent fraudulent claims.

The list below suggests the evidence that should be submitted with the P87. Anyone who has submitted a P87 claim but has not had it processed since 10.06.24 will also need to provide the additional evidence.

• Mileage Allowance: Records of the reason for the journey, starting and finishing postcodes and the number of miles travelled.
• Hotel and Meal Expenses (Subsistence): Receipts, date and name of hotel or restaurant.
• Professional Subscriptions: Receipts showing the professional body, amount and date paid.
• Working From Home Expenses: Evidence that the taxpayer must work at home, such as an Employment Contract or document stating explicitly that you must work from home.
• Other Expenses: Receipts showing the item and the amount paid by the claimant and the employment to which it relates.

For Uniform, Work Clothing and Tool Expenses no evidence is required for a flat rate claim but taxpayers should ensure they are eligible to claim and could justify doing so to HMRC.

You will, however, still be able to submit claims for uniform and laundry expenses online from 31.10.24. HMRC have indicated that digital claims for other expenses may be back available from April 2025.

If you submit employment expenses on a Self Assessment Tax Return – either because you already complete one or because your employment expenses are above £2,500 - you can continue to do so, however HMRC have begun a compliance project. This involves carrying out checks on the eligibility of claims and asking for further evidence.

The ‘Don’t Get Caught Out’ campaign also reminds taxpayers to check that they are eligible before attempting to claim tax relief on work expenses and raises awareness of some unscrupulous repayment agents. Our previous article on using repayment agents can be found here.

We advise anyone who completes a Self Assessment tax return to continue to retain the same evidence that is required with the P87 Claim Form.

If you require further advice or need assistance with claiming tax relief on your employment expenses you can contact Foremans on 01244 625 500 or contactus@foremansllp.com.