Do you regularly incur work-related expenses that your employer doesn’t reimburse you for? While this can be frustrating, there’s some good news: you may be able to claim tax relief by filling out HMRC form P87. Read on to find out when you can use this form and how to complete it.
You can use Form P87 to claim tax relief if:
You can’t use Form P87 if:
You can claim tax relief for the following work-related expenses:
You can only claim tax relief if your employer hasn’t reimbursed you for your expenses. If you’ve received partial reimbursement—for instance, you receive 25p per mile rather than HMRC’s approved mileage rate of 45p per mile—you can claim tax relief on the difference.You can complete your P87 form online or by completing a postal form.You’ll need the following information to hand:
The amount of tax relief you’ll receive depends on what rate of tax you pay. For example, if you’re a basic rate taxpayer claiming tax relief on £1,000 of allowable expenses, you’ll receive £200, that is 20 per cent of £1,000.If you’re claiming tax relief for the current tax year, HMRC will typically adjust your tax code and deduct less tax to take account of this. If you’re claiming for a previous year, you may receive a cheque or bank transfer for the amount owed.
You need to keep records and receipts for all expenses you’re claiming.You don’t have to submit these with your P87 form. However, HMRC may ask to see your evidence. If you’re claiming business mileage, you’ll need to keep records of the locations and distances of all your work journeys.