Understanding Form P87: An Essential Guide for UK Taxpayers
The HMRC Expenses Claim Form P87 is a crucial tool for UK employees looking to claim tax relief on work-related expenses that haven’t been reimbursed by their employers. Whether it's travel expenses, uniform costs, or subscriptions to professional organizations, the P87 form simplifies the process of recovering out-of-pocket expenses.
As of January 2025, this guide covers the updated rules, criteria, and practical examples to help you make an informed claim. Let’s dive into the details of what makes the P87 form indispensable for UK taxpayers.
What Is Form P87 and Who Is It For?
The P87 is an HMRC form used by employees to claim tax relief on specific work-related expenses. Unlike Self Assessment tax returns, which cater to a broader spectrum of tax matters, the P87 is tailored for employees whose claims do not exceed £2,500 per tax year.
Key Criteria for Using Form P87
To use the P87 form, you must meet the following conditions:
You are employed and paying Income Tax: Self-employed individuals cannot use this form.
Expenses are directly related to your job: The expenses claimed must be necessary for your role and incurred without full reimbursement from your employer.
Claims total £2,500 or less per tax year: Larger claims require submission through a Self Assessment tax return.
The claim is made within four years of the tax year: For example, claims for the 2019/20 tax year must be submitted by 5 April 2024.
Why Is the P87 Form Important?
HMRC allows tax relief on expenses incurred while performing your job duties, effectively reducing your taxable income. By filing a P87 form, employees can recoup a portion of their costs, making it an attractive option for many workers. Here are some scenarios where the P87 form is beneficial:
Uniform costs: Claim relief for the purchase, cleaning, or repair of uniforms specific to your job.
Professional subscriptions: Recover costs of memberships in HMRC-approved organizations.
Mileage expenses: If you use your own vehicle for work (excluding commuting), you can claim tax relief on mileage at approved rates.
Working from home: If your employer requires you to work remotely, you may be eligible to claim for household expenses.
Tax Relief Rates: What Can You Expect?
Tax relief is calculated based on your Income Tax rate:
Basic rate taxpayers (20%): Claim 20% of the eligible expenses.
Higher rate taxpayers (40%): Claim 40%.
Additional rate taxpayers (45%): Claim 45%.
For example, if you incurred £500 in approved expenses, a basic rate taxpayer would receive £100, while a higher rate taxpayer would receive £200.
What Expenses Can Be Claimed?
1. Uniform and Work Clothing
If your job requires specific attire, and your employer doesn’t reimburse the cost of buying, repairing, or cleaning it, you can claim tax relief. This includes items such as:
Uniforms (e.g., branded company apparel)
Protective gear (e.g., safety boots, helmets)
2. Professional Fees and Subscriptions
Membership fees for approved professional bodies essential to your job are eligible. The complete list of eligible organizations is available on the HMRC website.
3. Mileage Costs
If you use your personal vehicle for work-related travel, you can claim relief for mileage. HMRC’s approved mileage rates are:
Cars/vans: 45p per mile for the first 10,000 miles, then 25p per mile.
Motorcycles: 24p per mile.
Bicycles: 20p per mile.
Example: Sarah is a field engineer who drove 8,000 miles for work in the 2023/24 tax year. Using the car rate:
Tax-relief amount = 8,000 miles × 45p = £3,600.
Sarah can claim 20% of £3,600, equating to £720.
4. Working from Home
Employees required to work from home can claim:
A flat rate of £6 per week (£312 annually) without needing evidence.
Actual costs with supporting documents, such as increased utility bills.
5. Other Allowable Expenses
Other potential claims include:
Tools or equipment necessary for the job.
Travel costs, such as public transport tickets for business trips.
Hotel and meal expenses during overnight stays.
Submission Process: How to File Your P87 Form
Step 1: Download the Form
The P87 form is available on the official HMRC website. Ensure you download the latest version to avoid outdated details.
Step 2: Complete the Form
Fill in the required sections, including:
Personal details (name, address, National Insurance number).
Employer details and PAYE reference number.
Detailed breakdown of expenses with relevant dates.
Step 3: Gather Supporting Documents
Include receipts, mileage logs, or any evidence to substantiate your claims. For fixed-rate claims, such as the working-from-home allowance, no receipts are needed.
Step 4: Submit the Form
Postal submissions are mandatory for the P87 form. Send the completed form and evidence to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
Processing Times
According to HMRC, claims submitted via the P87 form typically take 8 to 12 weeks to process. To avoid delays, ensure all sections are completed accurately, and include the necessary evidence.
Common Pitfalls to Avoid
Exceeding the £2,500 Limit: For claims above this threshold, you’ll need to file a Self Assessment tax return instead.
Lack of Evidence: Claims without supporting documents are likely to be rejected.
Ineligible Expenses: Ensure the claimed expenses align with HMRC’s criteria.
Practical Scenarios and Detailed Examples for HMRC Form P87 Claims
Simplifying Complex Claims with Real-Life Examples
While the basics of HMRC Form P87 are clear, the actual process of identifying and claiming eligible expenses can feel daunting. In this section, we’ll break down practical scenarios and examples to illustrate how various taxpayers can effectively claim tax relief using Form P87.
Understanding Eligible and Ineligible Expenses
One of the most critical aspects of filing a successful P87 claim is understanding what qualifies as an eligible expense. Let’s first recap the categories with some real-life applications:
Eligible Expenses
Uniform and Protective Clothing: Expenses for required uniforms or safety equipment not reimbursed by your employer.
Mileage Costs: Using a personal vehicle for work-related travel (not commuting).
Professional Subscriptions: Fees for memberships in approved organizations directly related to your job.
Tools and Equipment: Items required for performing your duties that aren’t covered by your employer.
Working from Home: Increased costs for utilities or other necessities due to a home office setup.
Ineligible Expenses
Daily commuting costs between your home and your regular workplace.
Expenses fully reimbursed by your employer.
Costs not directly related to performing your job duties (e.g., personal subscriptions).
Scenario 1: Claiming for Uniform and Clothing Expenses
Example: Emily is a nurse employed by an NHS trust. Her role requires her to wear a specific uniform that she cleans at home. Her employer doesn’t reimburse these costs. Emily can claim a flat-rate expense of £125 per year for uniform maintenance.
Tax relief for basic rate taxpayers (20%): £125 × 20% = £25.
Tax relief for higher rate taxpayers (40%): £125 × 40% = £50.
Additional Tip: If Emily’s actual cleaning costs exceed the flat rate, she can claim the exact amount but must provide receipts for laundry products or dry cleaning.
Scenario 2: Mileage and Travel Claims for Field Workers
Example: James is a sales representative who travels to client sites using his car. In the 2023/24 tax year, he drove 12,000 work-related miles.
Approved mileage rate for the first 10,000 miles: 45p per mile.
Rate for miles exceeding 10,000: 25p per mile.
James’s claim:
10,000 miles × 45p = £4,500.
2,000 miles × 25p = £500.
Total mileage claim = £5,000.
As a basic rate taxpayer, James would receive £5,000 × 20% = £1,000 in tax relief.
Scenario 3: Professional Subscriptions for Accountants
Example: Sophia is a chartered accountant who pays £300 annually for her membership with the Association of Chartered Certified Accountants (ACCA), which is approved by HMRC.
Tax relief for higher rate taxpayers (40%): £300 × 40% = £120.
If Sophia is unsure whether her membership qualifies, she can refer to the official HMRC list of approved professional bodies, updated yearly.
Scenario 4: Working from Home Claims for Remote Employees
Example: Mark works as a software developer and is required by his employer to work from home. His employer does not provide a home office allowance, so he incurs additional heating and electricity costs.
Flat-rate claim: £6 per week.
Annual tax relief for basic rate taxpayers: £312 × 20% = £62.40.
Annual tax relief for higher rate taxpayers: £312 × 40% = £124.80.
If Mark’s actual expenses are higher, he can claim the exact amounts. For instance, if his bills increased by £500 due to remote work:
Basic rate taxpayers: £500 × 20% = £100.
Higher rate taxpayers: £500 × 40% = £200.
However, Mark must provide detailed evidence such as utility bills showing the increased costs.
Scenario 5: Partial Reimbursement by Employers
Example: Alex works as an architect and drives his personal car for site visits. His employer reimburses him 25p per mile, but HMRC’s approved rate is 45p per mile.
Claimable difference: 45p - 25p = 20p per mile.
If Alex drives 5,000 work miles:
5,000 miles × 20p = £1,000 claimable.
Tax relief for basic rate taxpayers: £1,000 × 20% = £200.
Tax relief for higher rate taxpayers: £1,000 × 40% = £400.
Submitting Claims for Multiple Tax Years
Example: Retrospective Claims
HMRC allows taxpayers to backdate claims for up to four years. For instance:
If you incurred eligible expenses in the 2019/20 tax year, you must file your claim by 5 April 2024.
Example: Liam, a teacher, claims £60 annually for professional subscriptions. He hasn’t claimed for the past four years:
Total claim: £60 × 4 = £240.
Tax relief for basic rate taxpayers: £240 × 20% = £48.
Tax relief for higher rate taxpayers: £240 × 40% = £96.
Navigating Complex Claims: Tips and Tricks
1. Organizing Your Records
Keep a detailed log of:
Mileage, including dates, destinations, and reasons for trips.
Receipts for tools, subscriptions, and other expenses.
Utility bills and employment contracts for working-from-home claims.
2. Using HMRC’s Resources
Download the P87 guidance notes available on the HMRC website to clarify complex sections. These notes provide line-by-line explanations for completing the form.
3. Seeking Professional Advice
For intricate cases, consider consulting a tax advisor or accountant. Their expertise can maximize your claim, especially if it involves overlapping rules or partial reimbursements.
New Updates as of January 2025
HMRC introduced several updates to streamline P87 claims:
Digital Submission Enhancements: While postal submission remains mandatory, HMRC plans to trial online submission options starting late 2025.
Flat-Rate Adjustments: The flat rate for uniform maintenance increased from £120 to £125 in the Autumn 2024 Budget.
How to Complete HMRC Form P87 Step by Step
Filling Out the P87 Form with Confidence
Navigating tax paperwork can seem overwhelming, but completing HMRC Form P87 doesn’t have to be. In this section, we’ll provide a detailed, step-by-step guide to help you fill out the form accurately. With practical tips and clear instructions, you’ll be equipped to claim your tax relief with ease.
Step 1: Downloading the Form
Visit the official HMRC website and search for "Tax Relief for Expenses of Employment (P87)."
Download the latest version of the form. Ensure you use the most recent update, as older forms may not be accepted.
Open the form using Adobe Reader, which is required for proper formatting. You can either complete it on-screen or print it out and fill it manually.
Step 2: Basic Personal Information
The first section of the form requires your personal details. Accuracy here is critical to ensure your claim is processed without delays.
What to Fill Out:
Your Name: Provide your full legal name as it appears on HMRC records.
National Insurance Number: Double-check this for accuracy; it’s used to link your claim to your tax record.
Address: Ensure it matches the address HMRC has on file. If you’ve recently moved, update HMRC before submitting your claim.
Date of Birth: This helps HMRC verify your identity.
Pro Tip: If you’ve changed your name or address recently, inform HMRC beforehand to avoid processing delays.
Step 3: Employment Details
This section identifies your employer and your role. Here’s what you need:
Details to Include:
Employer’s Name: The official name of your employer.
PAYE Reference Number: This is found on your payslip or P60. It helps HMRC identify your employer’s tax records.
Your Job Title: Clearly state your role, as this can determine the type of expenses you’re eligible to claim.
Employment Period: If you’re claiming for a specific tax year or job, indicate the start and end dates of your employment.
Example:
Employer’s Name: ABC Logistics Ltd.
PAYE Reference: 123/AB45678.
Job Title: Delivery Driver.
Employment Period: 6 April 2023 – 5 April 2024.
Step 4: Claim Details
A. What Are You Claiming For?
This is the most crucial section of the form. You must detail the type of expenses you’re claiming and provide supporting information.
Mileage Allowance: Include the number of miles driven for work and your vehicle type.
Approved Rates:
Cars/vans: 45p per mile for the first 10,000 miles, then 25p per mile.
Motorcycles: 24p per mile.
Bicycles: 20p per mile.
Example Entry for Mileage Claims:
Total Miles Driven: 8,500.
Claim Amount: 8,500 × 45p = £3,825.
Uniform/Clothing Costs: Indicate whether you’re claiming the flat-rate allowance or the exact amount.
Flat Rate: Simply check the box for "Flat Rate" and specify the year.
Actual Costs: Include receipts for laundry or clothing purchases.
Professional Subscriptions: List the organization(s) and the exact membership fees paid. Ensure the organization is HMRC-approved.
Working from Home: Indicate whether you’re claiming the flat rate (£6 per week) or actual expenses. Provide evidence such as utility bills if claiming the latter.
B. Break Down by Tax Year
You may claim for multiple tax years on a single form. Use separate rows for each tax year and specify the corresponding expenses.
Tax Year | Expense Type | Claim Amount | Evidence Provided |
2023/24 | Mileage (8,500 miles) | £3,825 | Mileage Log |
2023/24 | Uniform Maintenance | £125 | N/A (Flat Rate) |
2022/23 | Professional Subscription (ACCA) | £300 | Membership Invoice |
Pro Tip: Use a spreadsheet to calculate and organize your claims before filling out the form.
Step 5: Evidence and Supporting Documents
HMRC requires proof for most claims. Attach clear and legible copies of the following:
Receipts: For subscriptions, uniforms, and equipment purchases.
Mileage Logs: Include journey dates, start and end postcodes, purpose of travel, and total miles.
Utility Bills: For working-from-home claims (if not using the flat rate).
Example of a Mileage Log Entry:
Date | Start Location | Destination | Reason for Journey | Miles |
10/05/2024 | SW1A 1AA | SE1 7PB | Client Meeting | 12 |
15/05/2024 | SW1A 1AA | W1A 1HQ | Training Session | 8 |
Step 6: Declaration and Signature
The final section requires you to declare that the information provided is accurate. Here’s how to complete it:
Signature: Sign and date the form.
Agent Details: If an agent is filing on your behalf, their details must be included in the relevant section.
Step 7: Submitting the Form
Double-check the form and ensure all sections are complete.
Attach all required evidence securely.
Mail your completed form to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
Processing Times and What Happens Next
HMRC Processing Timeline:
Claims are typically processed within 8-12 weeks.
You’ll receive the tax relief as a refund, often directly into your bank account if HMRC holds your payment details.
Tracking Your Claim:
If you haven’t received a response after 12 weeks, contact HMRC’s helpline to check the status of your claim. Be ready to provide your National Insurance number and the date you submitted the form.
Tips for a Successful Claim
Be Detailed: Provide as much information as possible in each section to avoid follow-up queries.
Attach Proper Evidence: Lack of documentation is a common reason for delays or rejections.
Submit Early: Avoid the year-end rush by filing as soon as you’re eligible.
How to Fill Form P87 – A Question-by-Question Guide
Section 1: Personal and Employment Details
Question 1.1 – Title
Enter your title (e.g., Mr, Mrs, Miss, Ms, Dr). Sample Answer: Mr
Question 1.2 – Your Surname or Family Name
Provide your last name. Sample Answer: Smith
Question 1.3 – First Names
Write your first and any middle names. Sample Answer: John Michael
Question 1.4 – Address
Enter your current residential address. Ensure it matches HMRC’s records. Sample Answer: 123 Example Street, London
Question 1.5 – Contact Phone Number
Provide a phone number where HMRC can reach you. Sample Answer: 01234 567890
Question 1.6 – Date of Birth
Input your birth date in DD/MM/YYYY format. Sample Answer: 15/03/1985
Question 1.7 – National Insurance Number
Provide your NI number. Sample Answer: AB123456C
Section 2: Employment Details
Question 2.1 – Employer PAYE Reference
Found on your P60 or P45. Essential for linking your claim to your employer. Sample Answer: 123/A246
Question 2.2 – Job Title
State your job title. Sample Answer: Teacher
Question 2.3 – Employer Name
Write your employer’s full name. Sample Answer: Example Academy Trust
Question 2.4 – Employer Address
Provide the first line of your employer’s address. Sample Answer: 45 Education Road, London
Question 2.5 – Employer Postcode
Include the employer’s postcode. Sample Answer: E12 3AB
Question 2.6 – Type of Industry
Specify the industry you work in (e.g., healthcare, education, retail). Sample Answer: Education
Question 2.7 – Employee Number
Found on your payslip. Sample Answer: 56789
Section 3: Flat-Rate Expenses
Question 3.1 – Flat Rate Expense Deduction
Input the amount for each tax year ending on 5 April. Refer to HMRC's flat-rate allowance list for your industry. Sample Answer:
| Year Ending 5 April | Flat Rate Deduction |
| 2024 | £125 |
| 2023 | £120 |
Section 4: Subscriptions to Professional Bodies
Question 4.1 – Name of Professional Body
List HMRC-approved bodies you’ve paid subscriptions to. Sample Answer: Association of Chartered Certified Accountants (ACCA)
Question 4.2 – Amount of Subscription
State the annual subscription fee. Sample Answer: £300
Question 4.3 – Amount Repaid to You
Input any reimbursement received from your employer. Sample Answer: £0
Question 4.4 – Expenses Claimed
Subtract the amount in 4.3 from 4.2. Sample Answer: £300
Section 5: Mileage Allowance
Question 5.1 – Total Business Mileage
Enter the total miles driven for work. Sample Answer: 8,500 miles
Question 5.2 – Mileage Amount Up to First 10,000 Miles
Break down the first 10,000 miles. Sample Answer: 8,500 miles
Question 5.3 – Mileage Multiplied by 45p
Calculate 8,500 × £0.45. Sample Answer: £3,825
Question 5.4 – Mileage Amount Over 10,000 Miles
If applicable, enter the mileage exceeding 10,000 miles. Sample Answer: 0 miles
Question 5.5 – Mileage Multiplied by 25p
Calculate the additional mileage allowance. Sample Answer: £0
Question 5.6 – Maximum Tax-Free Amount (Cars and Vans)
Add values from 5.3 and 5.5. Sample Answer: £3,825
Question 5.12 – Total Mileage Allowance Payments Received
Enter any reimbursements received from your employer. Sample Answer: £1,500
Question 5.13 – Total Mileage Allowance Relief
Subtract 5.12 from 5.6. Sample Answer: £2,325
Section 6: Hotel and Meal Expenses
Question 6.1 – Where You Stayed
Provide details of your stay location. Sample Answer: Hilton Hotel, Manchester
Question 6.2 – Amount Spent on Allowable Items
Include receipts for food or accommodation costs. Sample Answer: £400
Question 6.3 – Date or Number of Overnight Stays
Specify the period or number of nights. Sample Answer: 5 nights
Question 6.4 – Amount Repaid to You
Enter any employer reimbursements. Sample Answer: £200
Question 6.5 – Total Expenses Claimed
Subtract 6.4 from 6.2. Sample Answer: £200
Section 7: Other Expenses
Question 7.1 – Description of Expenses
Describe the type of expense (e.g., working from home). Sample Answer: WFH (Working From Home)
Question 7.2 – Amount of Expense
State the actual cost or flat rate. Sample Answer: £312
Question 7.3 – Amount Repaid to You
Enter any reimbursement from your employer. Sample Answer: £0
Question 7.4 – Total Expenses Claimed
Subtract 7.3 from 7.2. Sample Answer: £312
Section 8: Amount Repaid by Your Employer
Question 8.1 – Type of Expenses Received
State the nature of reimbursed expenses. Sample Answer: Mileage Allowance
Question 8.2 – Amount Received
Enter the total reimbursement amount. Sample Answer: £1,500
Section 9: Total Expenses
Question 9.1 – Total Net Allowable Expenses
Add totals from all previous sections and subtract employer repayments. Sample Answer: £2,537
Section 10: How You Want to Be Paid
Question 10.1 – Payment to You or a Nominee
Indicate if you want payment to yourself or a nominee. Sample Answer: Cheque payable to me.
Declaration
Sign and date the form to confirm accuracy.
Submission: Print and send the completed form to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
By following this guide, you’ll ensure that your Form P87 is completed accurately and ready for processing by HMRC.
Overcoming Challenges and Avoiding Common Mistakes in HMRC Form P87 Claims
Navigating the Pitfalls of Filing Form P87
Completing the HMRC Expenses Claim Form P87 can be straightforward, but common errors and misunderstandings often lead to delays or rejections. In this section, we’ll address the challenges faced by taxpayers, explore how to overcome them, and share tips to ensure a smooth filing experience.
Common Challenges and Their Solutions
1. Misunderstanding Eligible Expenses
One of the most frequent issues is confusion about what qualifies as a legitimate claim. For example, many taxpayers mistakenly attempt to claim for commuting costs, which are explicitly excluded.
Solution:
Review HMRC’s guidelines or consult the official P87 Guidance Notes.
Cross-check expenses against HMRC’s published lists of approved costs for clarity.
Example: Valid claim: Travel from your regular workplace to a client’s site.Invalid claim: Daily commute from home to your office.
2. Missing or Incomplete Supporting Evidence
HMRC rejects claims lacking proper documentation. This includes missing mileage logs, incomplete receipts, or insufficient proof of working from home.
Solution: Organize and prepare evidence before completing the form. Here’s what’s required for common claims:
Mileage Claims: A detailed log with journey dates, reasons, start and end locations, and miles covered.
Uniform Costs: Receipts for purchases or laundry expenses (if not using the flat rate).
Professional Subscriptions: Membership invoices or payment confirmations.
Working from Home: Copies of utility bills or employment contracts.
Tip: Create a digital archive of receipts and logs to simplify future claims.
3. Exceeding the £2,500 Limit
If your total expenses surpass £2,500 in a tax year, you cannot use Form P87 and must file a Self Assessment tax return instead.
Solution:
Before submitting the form, calculate your total claim to ensure it doesn’t exceed the threshold.
If your claim is above £2,500, register for Self Assessment on HMRC’s website.
Example: Claiming £3,000 for professional subscriptions and mileage in a single tax year requires filing through Self Assessment.
4. Duplicate Claims for Reimbursed Expenses
Submitting claims for expenses already reimbursed by your employer can result in rejections or penalties.
Solution:
Verify with your employer whether any expenses have been reimbursed before claiming them.
Keep a clear record of reimbursements received.
5. Missing the Deadline
HMRC allows retrospective claims for up to four years after the end of the relevant tax year. However, many taxpayers miss this deadline due to a lack of awareness.
Solution:
Mark critical dates on your calendar, such as the tax year-end (5 April) and the four-year cutoff for claims.
Example: For the 2019/20 tax year, the claim deadline is 5 April 2024.
Top Mistakes to Avoid When Filing Form P87
1. Incomplete Forms
Leaving mandatory fields blank or providing inconsistent information is a common reason for delays.
Solution: Carefully review the form after completion. Use HMRC’s guidance notes to cross-check each section.
2. Incorrect PAYE Reference
The PAYE reference links your claim to your employer. Using an incorrect reference may result in processing errors.
Solution: Locate the correct PAYE reference on your payslip or P60 before filling out the form.
3. Failing to Notify HMRC of Changes
If your personal details (e.g., name, address, or bank information) have changed, failure to update HMRC can cause refunds to be sent to the wrong account or address.
Solution: Inform HMRC of any updates to your personal details before submitting the form.
Recent HMRC Updates Affecting P87 Claims
1. New Online Options
As of late 2024, HMRC announced trials for an online P87 submission system, set to roll out widely in 2025. While postal submissions remain mandatory, this development promises faster processing and real-time status updates.
2. Adjustments to Flat-Rate Allowances
The flat-rate expense for uniform cleaning increased from £120 to £125 annually in the Autumn 2024 Budget. Ensure you use the updated rate for claims made for the 2024/25 tax year.
3. Enhanced Processing Times
HMRC has streamlined its claims processing system, reducing the standard timeline from 12 weeks to 8-10 weeks for most claims.
Tracking and Managing Your Claim
Checking Your Claim Status
If you haven’t heard back from HMRC within 10 weeks, contact their helpline. Be prepared to provide:
Your National Insurance number.
The date your form was submitted.
Any reference number provided by HMRC.
How to Avoid HMRC Inquiries or Audits
Be Honest: Do not inflate claims or include ineligible expenses. HMRC may audit suspicious claims.
Provide Accurate Records: Ensure all mileage logs, receipts, and supporting documents are complete and truthful.
File Promptly: Avoid last-minute submissions that could lead to rushed errors.
Practical Tools and Resources for Filing
HMRC Guidance Notes
Download the official guidance for Form P87 to clarify any uncertainties while completing the form.
Mileage Tracking Apps
Consider using apps like MileIQ or Triplog to maintain accurate mileage records.
Professional Tax Advice
For complex cases, consult a tax advisor who can assist with maximizing your claim while ensuring compliance.
Examples of Rejected Claims
Overclaimed Mileage: HMRC rejected a claim for 12,000 miles as the taxpayer failed to provide a mileage log.
Duplicate Claims: A teacher submitted a claim for union fees already reimbursed by the school.
Late Submission: A claim for the 2018/19 tax year submitted after 5 April 2023 was denied.
A Case Study: Navigating HMRC Form P87
Meet Oliver Bradford
Oliver Bradford, a 38-year-old field sales consultant from Birmingham, spends a significant portion of his time traveling between client locations, managing professional memberships, and occasionally working from home. His job requires him to use his personal car, purchase specialized equipment, and maintain a professional wardrobe. By 2025, Oliver decided it was time to reclaim some of these costs through HMRC’s Form P87 after realizing he was eligible for tax relief.
Step 1: Understanding His Eligibility
Oliver’s expenses for the 2024/25 tax year included:
Mileage for business travel: 7,500 miles.
Professional subscriptions: Membership with the Chartered Institute of Marketing (CIM) costing £300 annually.
Uniform maintenance: Flat-rate allowance for cleaning branded company attire, set at £125 for his industry.
Working-from-home expenses: Due to client deadlines, he worked from home for part of the year, incurring additional utility costs.
Since his total expenses amounted to less than £2,500, he was eligible to use Form P87 rather than filing a Self Assessment tax return.
Step 2: Gathering the Necessary Documentation
Before completing the form, Oliver collected all the required evidence:
Mileage logs: He meticulously recorded every work trip, including the date, purpose, start, and end locations.
Professional subscription receipts: A receipt from CIM showing his £300 annual fee.
Utility bills: Proof of increased energy usage during work-from-home periods.
Employment details: His employer’s PAYE reference from his P60 form.
Step 3: Filling Out the Form
Personal Details (Section 1)
Oliver provided his full name, address, date of birth, and National Insurance number to identify his records within HMRC’s system.
Example Entry:
Name: Oliver Bradford
Address: 12 Oak Lane, Birmingham, B23 4AB
Date of Birth: 14/07/1987
NI Number: AB123456C
Employment Details (Section 2)
Here, Oliver detailed his job title, employer name, and PAYE reference number.
Job Title: Field Sales Consultant
Employer Name: West Midlands Sales Ltd
PAYE Reference: 123/WM456
Step 4: Calculating His Claims
Oliver calculated his claims across different expense categories:
Mileage (Section 5)
Total business mileage: 7,500 miles.
Approved rate: 45p per mile for the first 10,000 miles.
Calculation:
7,500 × £0.45 = £3,375.
Since his employer reimbursed him £1,500 for travel, Oliver subtracted this amount:3,375 − 1,500 = £1,875 claimable relief.
Professional Subscriptions (Section 4)
Total annual cost: £300.
Employer reimbursement: £0.
Claimable amount: £300.
Uniform Maintenance (Section 3)
Flat-rate expense: £125.
Evidence required: None, as HMRC’s flat-rate deduction doesn’t require receipts.
Working-from-Home (Section 7)
Weekly flat rate for working from home: £6.
Number of weeks: 20 weeks.
Calculation:
20 × £6 = £120.
Oliver had no employer reimbursement for this expense, so the entire £120 was claimable.
Step 5: Summarizing the Total Claim
At the end of the form (Section 9), Oliver added up his claims for the tax year:
Mileage: £1,875
Subscriptions: £300
Uniform maintenance: £125
Working from home: £120
Total Claim: £1,875 + £300 + £125 + £120 = £2,420.
Step 6: Submission
Oliver double-checked his entries, attached supporting documents, signed the declaration, and mailed the form to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
Step 7: HMRC’s Processing
After eight weeks, Oliver received a letter confirming his claim had been approved. HMRC refunded him directly into his bank account.
Refund Breakdown:
Oliver is a basic rate taxpayer (20%). His refund was calculated as 20% of the total allowable expenses:
£2,420 × 20% = £484.
Lessons from Oliver’s Experience
Oliver learned several valuable lessons from his P87 journey:
Detailed Records Are Key: His meticulous mileage logs and receipts expedited HMRC’s approval.
Understand Flat-Rate Allowances: Using HMRC’s flat-rate figures saved time and effort.
File Early: Submitting in April 2025 allowed Oliver to receive his refund before the summer.
This case study showcases how a systematic approach to HMRC Form P87 can ensure accurate claims and smooth processing for UK taxpayers.
How a Tax Accountant Can Help You Claim Tax Relief on Your Expenses
Navigating the labyrinthine world of tax codes, forms, and regulations can be a daunting task for anyone. Whether you're an individual or a business owner, understanding how to claim tax relief on your expenses in the UK can be complicated. This is where a tax accountant comes into play. A tax accountant is not just a number cruncher; they are financial advisors who can guide you through the complex tax landscape, ensuring you take advantage of every tax relief option available to you. Here's how a tax accountant can assist you in claiming tax relief on your expenses in the UK.
Expertise in Tax Laws and Regulations
Tax laws are ever-changing, and keeping up with the latest amendments is a full-time job. A tax accountant is well-versed in the current tax laws, including those specific to the UK, and can provide expert advice on how you can benefit from various tax reliefs. They can identify which expenses are allowable and how to maximize your claims, ensuring you don't miss out on any opportunities to reduce your tax liability.
Personalized Financial Planning
Every individual or business has unique financial circumstances. A tax accountant can offer personalized financial planning tailored to your specific needs. They can assess your income, expenditures, and financial goals to develop a tax strategy that aligns with your objectives. This includes identifying the types of expenses you can claim tax relief on, such as professional fees, mileage, or even work-from-home costs.
Accurate and Timely Filing
Filling out tax forms can be confusing and time-consuming. One small mistake can lead to delays in processing your claim or, worse, a tax investigation. A tax accountant can meticulously prepare and file your tax returns, ensuring accuracy and compliance with the law. They can help you fill out complex forms like the P87 for claiming tax relief on employment expenses, making sure every section is completed correctly.
Assistance with Documentation
Proper documentation is crucial when claiming tax relief on expenses. You'll need to provide evidence like receipts, invoices, and mileage logs to support your claims. A tax accountant can help you organize these documents, advising you on what records to keep and for how long. They can also assist in digitalizing your records, making it easier to retrieve them if needed for an audit or review by HMRC.
Representation in Tax Audits
If you're unfortunate enough to be selected for a tax audit, having a tax accountant by your side can be invaluable. They can represent you in discussions with HMRC, providing all the necessary documentation and explanations to substantiate your claims. Their expertise can often expedite the audit process and may result in a more favorable outcome.
Ongoing Support and Advice
A tax accountant's role doesn't end once your tax return is filed. They offer ongoing support and can update you on any changes in tax laws that could affect your future claims. Many tax accountants also provide year-round consultation services, helping you plan your expenses and claims in real-time, rather than scrambling at the end of the tax year.
In short, a tax accountant is an indispensable resource for claiming tax relief on your expenses in the UK. Their expertise in tax laws, personalized financial planning, and meticulous attention to detail can save you time and money, ensuring you make the most of the tax relief options available to you. Whether you're an individual or run a business, investing in a tax accountant can offer you peace of mind and financial benefits in the long run.
FAQs
Q1: What is the maximum amount you can claim using HMRC Form P87?
A: You can claim up to £2,500 in allowable expenses per tax year using Form P87. If your total claim exceeds this amount, you must submit a Self Assessment tax return instead.
Q2: Can you submit Form P87 online, or is postal submission mandatory?
A: As of September 2024, HMRC mandates postal submissions for Form P87. However, an online submission option is being trialed and is expected to roll out in 2025.
Q3: Is there a deadline for submitting Form P87 for a previous tax year?
A: Yes, you can claim expenses for up to four years after the end of the relevant tax year. For example, claims for the 2019/20 tax year must be submitted by 5 April 2024.
Q4: Can you use Form P87 if you are self-employed?
A: No, Form P87 is specifically for employees. Self-employed individuals must claim expenses through the Self Assessment tax return process.
Q5: How do you check if your claim has been received and processed by HMRC?
A: You can contact the HMRC helpline for updates on your claim status. Be prepared to provide your National Insurance number and the submission date of your form.
Q6: Can you claim expenses for part-time work using Form P87?
A: Yes, as long as the expenses meet HMRC’s eligibility criteria, you can claim for part-time or full-time employment.
Q7: What should you do if your employer reimburses some but not all of your expenses?
A: You can still claim the unreimbursed portion of your expenses on Form P87 by subtracting the reimbursed amount from the total cost.
Q8: Is there a specific flat-rate deduction for teachers or healthcare workers?
A: Yes, HMRC allows specific flat-rate deductions for certain professions, such as teachers and healthcare workers, to cover uniform or equipment costs.
Q9: Are subscription fees for online training courses claimable using Form P87?
A: Only subscriptions to HMRC-approved professional bodies or organizations are claimable. Online training courses generally do not qualify unless directly related to your job and approved by HMRC.
Q10: Can you claim tax relief for travel expenses between two workplaces?
A: Yes, travel between two workplaces for the same employer is eligible for tax relief, but commuting between your home and workplace is not.
Q11: What happens if you submit an incomplete Form P87?
A: HMRC may reject the form or request additional information, delaying the processing of your claim. Ensure all mandatory fields are filled and supporting evidence is attached.
Q12: How long does it take for HMRC to process a P87 claim?
A: Claims are usually processed within 8 to 12 weeks. However, this timeline can vary depending on the volume of claims HMRC is handling.
Q13: Can you submit Form P87 for expenses incurred during unpaid work experience?
A: No, Form P87 is for employees who have paid Income Tax. Unpaid work experience or internships are not eligible for claims.
Q14: Are claims for international business trips eligible on Form P87?
A: Yes, expenses incurred for international business trips, such as accommodation, meals, and travel, are claimable, provided they meet HMRC’s criteria and are not reimbursed by your employer.
Q15: Can expenses for personal protective equipment (PPE) be claimed using Form P87?
A: Yes, if your job requires PPE and your employer has not reimbursed you, these expenses can be claimed on Form P87.
Q16: What happens if your employer disputes the validity of your claim?
A: HMRC will review the evidence you provide and determine eligibility. Your employer’s disagreement does not necessarily disqualify your claim if it meets HMRC’s criteria.
Q17: Can you claim relief for mileage expenses if you drive a company car?
A: No, you cannot claim mileage expenses for a company car unless you are covering fuel costs not reimbursed by your employer.
Q18: What is the difference between flat-rate expenses and exact expenses on Form P87?
A: Flat-rate expenses are pre-approved amounts for specific jobs that do not require evidence. Exact expenses require proof, such as receipts or logs.
Q19: Can you amend a submitted Form P87 if you made a mistake?
A: Yes, you can contact HMRC to request amendments to a submitted claim. You may need to provide corrected information and supporting documents.
A: Yes, employees required to work from home can claim a flat rate of £6 per week or actual costs, provided they have supporting evidence and meet HMRC’s requirements.
Disclaimer:
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