Employers are being encouraged to communicate where there are work associated expenses and allowances with their Employees so that they can quickly claim tax relief on expenses they are entitled to such as on work uniforms, clothing, tools, professional fees and subscriptions.
The P87 form changed on 21st December 2022, and any claims must be submitted on HMRC’s latest version. Any P87 forms received that do not include the required information or are not on HMRC’s latest form will be rejected.
Employee’s claiming must include the following information:
- section 1, all details — title and contact phone number are optional
- section 2, employer PAYE reference number, this can be found on the employee’s Personal Tax Account, the HMRC app, P45 or P60
- section 2, type of industry is needed but only if the claim includes flat rate expenses
The quickest and easiest way for an employee to claim employment expenses is to use the HMRC online services. This makes sure the employee receives 100% of the refund they are entitled to.
There are companies who will make a claim on the employee’s behalf, but they will charge, and their fees can be up to 50% of the refund, as well as an administration charge. These companies (referred by Which as rebate reprobates) usually advertise on social media and online, and the information the employee gives them is the same as if they applied themselves. The benefit of going to HMRC directly means the employee gets to keep all of what they’re due without paying any fees.