Employment Expenses (Form P87)

From 14th October 2024, HMRC are introducing new evidence requirements for claimants to reduce the risk of ineligible expense claims.

When customers send HMRC evidence for PAYE employment expense claims, HMRC will check it and confirm whether they are entitled to tax relief or not.

From HMRC - “On 10 June, we suspended processing some claims for tax relief on employment expenses while we considered the best way to manage this risk.

In response, we have decided that we will be changing the PAYE employment expense process for customers.... Our aim is to help people get their tax right first time, instead of focusing on correcting issues after they arise. We want to fix problems at source by taking preventative action to educate and prompt customers towards better compliance.”

Subscriptions to professional bodies -Copies of receipts, or other evidence, that shows how much was paid for each professional subscription claimed.

Mileage allowance -A copy of a mileage log for each employment. This should include the reason for every journey and the postcodes for the start and finishing points.

Hotel and meal expenses - Copies of receipts that include the date of a stay or a meal, and the name of the hotel or restaurant.

Uniform, work clothing and tool expenses (also known as Flat Rate Expenses)

HMRC will not require evidence for these Flat Rate Expenses claims. However, customers are still responsible for making sure they are eligible to claim FRE. HMRC will still carry out risking to identify customers who may not be eligible to claim FRE. All other types of expenses which require evidence will need to be submitted to HMRC using the post.

It is so important to check that you are eligible to before claiming relief on work expenses.

https://dontgetcaughtout.campaign.gov.uk/claiming-expenses/

Don’t get caught out by online adverts and tax refund companies who offer to make work expenses claims for you so they can claim a commission. If it turns out you aren’t eligible to claim, you’re still responsible for any claims made on your behalf.

HMRC will keep this updated process under review and will provide a further update in the future.