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P87: HMRC Formalises Employment Expenses Claims

Mandatory from the 7th of May 2022 ...

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Posted by Helen Beaumont on 30/03/2022 @ 8:00AM

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, provided the claim doesn't include any attachments ...

HMRC is now using optical character recognition to process the P87 quickly!

HMRC is now using optical character recognition to process the P87 quickly!

copyright: choreograph / 123rf


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.

Until next time ...



HELEN BEAUMONT

 
 



Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about the P87 changes, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.

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About Helen Beaumont ...

 

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.