How to Use P87 HMRC Form to Claim Tax Relief?
If you need to cover uniform costs, mileage and travel, you could be entitled to tax relief. Learn about the P87 HMRC form here
Being an employee of certain establishments can be costly. You have a uniform, tools, travel, subscription and more. Sometimes the company will cover you but sometimes they won’t.
Regardless of whether you can get partial reimbursement or not, it is worth filling out a P87 HMRC form.
Simply put, the P87 is an expense tax relief form. It serves to request tax relief on the expenses you’ve made as an employee of a company. In this article, we’ll show you how to qualify, what the cap amounts are and how to use the form. Tax accounting doesn’t need to be complicated - you’re safe with us.
Here’s What We’ll Cover:
Who Qualifies For a P87 HMRC Form
You can qualify to claim tax relief on expenses if:
- You are an employed individual. You are not self-employed
- You haven’t submitted a self assessment tax return form for the previous tax year
- Your expenses are work-related
- Your expenses are worth less than £2500
What Expenses Qualify For Tax Relief?
- Clothing and uniforms required for work
- Meals on business trips
- Hotel costs for business trips
- Transport for business trips e.g parking, tolls and public transport
- Mileage and fuel costs if you have your own car. Your commute from work to home does not count.
- Fuel costs if you are using a company car
- Subscriptions required for work. Particularly relevant if you work from home
- Cleaning, replacement and repair of tools and clothing that you need to do your work.
How to Use The P87 HMRC Form
The first thing to note before you start filling in your P87 is that only unreimbursed expenses count. Partial reimbursements also count. So if your employer pays you less for mileage than the full government allowance, you can claim tax relief on the difference.
To start your application, you will need:
- Your National Insurance Number
- Your employee number (which you can find on your payslip)
- Your employer’s PAYE number (this is also on your payslip)
- The receipts and records of your allowable expenses
- Any records or receipts of your employer’s contributions to your expenses
If you have never claimed tax relief for expenses before, you can only do it online.
You can claim for up to 5 different jobs and for multiple tax years.
If you want to claim for more than 5 different jobs, you’ll need to submit your form via post.
- To start your claim, head to https://www.gov.uk/guidance/claim-income-tax-relief-for-your-employment-expenses-p87
- From there, click “claim online”
- You will be prompted to fill in your Government Gateway details if you have them. Alternatively, you can sign up for a Government Gateway login. Keep these safe as they’ll be useful in future.
- You’ll have a screen to upload your expenses with receipts and records.
- Follow the instructions to submit the form and the HMRC will review your application.
After you have done the P87 form online for one tax year, you can do it over the phone in future.
However, to claim by phone you can only claim up to £1000 or £25000 on professional fees and subscriptions. Otherwise, you’ll still need to claim via the online service. Claiming online is slightly easier anyway. It’s certainly quicker.
How Much Tax Relief Can Your Reclaim On Expenses
The HMRC calculates tax relief on a case by case basis. On cleaning and repair expenses you can claim the flat rate. The flat rate is a standard rate set every tax year by the HMRC. At the moment, the flat tax relief rate is 20%.
You can claim a total deduction depending on the industry you are in. The amounts vary so do consult the HMRC website to check.
Outside of the standard tax relief rates, most of your expense relief will depend on your tax rate. Essentially, how much are you taxed at the moment? You can tell this from your tax code. That will determine what relief you qualify for.
The P87 form can be your best friend if you are an employee with expenses. If you follow the steps, you can get a slight reduction in your taxes.
For more UK tax guides, check out our resource hub!