P87: HMRC Formalises Employment Expenses Claims

As of the 7th of May 2022, claims for Income Tax relief on employment expenses must always be made on the P87 form. Automation will speed up the processing, provinded the claim doesn't include any attchments ...

Currently, claims for Income Tax relief on employment expenses can be made using:

- a self-assessment tax return
- online service available to taxpayers (but not agents)
- print, complete and post the P87 form available on gov.uk
- by phone, if a claim has been made for a previous tax year
- substitute claim form or letter used by high volume repayment agents

From the 7th of May 2022, HMRC will reject claims that are made on substitute claim forms, although the other options will remain available for the time being.

Changes have been made to the P87 form as it now has the facility to claim for multiple years and up to five employments. The new form is available now and will be mandatory from the 7th of May 2022.

"HMRC is now using optical character recognition!"

It's using OCR and automation to process the forms without any human intervention. Applications must be fully compliant to be processed swiftly. Any forms that don't comply, such as having attachments, will be processed manually, but this will take far longer.

I do welcome this progress from HMRC, although many high volume repayment agents will be in a bit of a pickle now.

If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.