Tax relief for employment expenses
A P87 form is for employees to claim tax relief on workplace expenses. If you are self-employed, when you submit your yearly self-assessment form, you need to notify HMRC of your costs. If you have more than one job, for example, you work for a company but also do self-employed work, you will need to submit separate P87’s.
Do I need to file a P87 tax expense form?
You should fill out a P87 if you are employed but have used your own money for work expenses totalling up to £2,500. If the expenses exceed £2,500, you usually need to file a self-assessment tax return. A typical example would be a construction worker who travels to tempory sites for work. The worker would use his own transport to travel to and from the sites but would not be reimbursed for the cost of fuel by his employer; this would mean he can claim tax relief on his mileage. You can also claim tax relief on if you keep the receipts.
• Flat rate expenses
• Travel (rail tickets or van hire)
• Professional fees (including unions)
• Accommodation (hotels and meal expenses)
• Equipment and material
What information do I need for a P87?
You will need to have the following information plus receipts as evidence.
• Employer PAYE number
• Your employee number
Both of these numbers will be on your payslip
• Details and receipts of the expenses you are claiming
• Any employer contributions
For example, you may get 0.25p per mile back from your employer, rather than the 0.45p from HMRC approved mileage rate. You will be able to claim the difference back
Do I need to submit a P87 form to claim back my work expenses?
No, HM Revenues and Customs will accept claims by phone if your total expenses are less than £1,000 or less than £2,500 for any professional fees and subscriptions. You can claim by post with a written correspondence if you are claiming tax relief for someone else, or if you are claiming for 5 separate jobs.
What Can I Claim Tax Back On?
You can claim tax back on most work-related expenses. Below is a list of items that you can request a tax rebate on:
• Vehicles for work use
• Fuel/Mileage costs
• Travel expenses
• Overnight expenses (food in certain circumstances)
• Rail Tickets (single & season tickets)
• Uniforms, work clothing and tools
• Cleaning costs for uniforms
• Professional fees, subscriptions & unions fees
This list is an example of what you could claim back; there may be expenses & items specific to the job role that you could claim back.
What are the Deadlines?
In the UK, the current legislation states that you can claim back up to four years when claiming a tax rebate. What this means is you could claim for the following tax periods:
• Year ending 5th April 2016
• Year ending 5th April 2017
• Year ending 5th April 2018
• Year ending 5th April 2019
Over such a long period of time wage slips and p60s can be lost or misplaced. In most cases, this is not a problem as at Swift Refunds we can seek copies from HM Revenue & Customs on your behalf.
Am I Due Any Tax Back?
Most workers, whether employed or self-employed may be due a tax rebate for work-related items, expenses or because they have paid too much tax. HMRC do not know everyone’s individual circumstances, and it is up to the taxpayer to contact HMRC to see if they are entitled to any tax relief.
Other reasons for a tax refund may include pension payments, redundancy payments, interest from a savings account, PPI, or UK income if you are living aboard.
All claims for tax refunds and rebates are reviewed on a case by case basis. Use our tax claim form and answer a few simple questions to see if you could be entitled to make a claim.
stay informed Subscribe now
Keep up to date with all the latest news and changes to make sure you don’t miss out on future refunds and tax savings.
Tax Refunds & Tax Returns made easy
DO YOU QUALIFY FOR A TAX REFUND FROM HMRC?
Whether you use your own vehicle for work, use public transport such as trains to travel to various work locations or buy your own equipment and materials then there is a good chance that you can claim back for your travel expenses. HMRC lets claimants claim up to 4 years worth of expenses. On average a 4-year tax rebate pays out around £2,500.