Introduction to the P87 Form
The P87 form is used to claim tax relief on employment expenses that are not reimbursed by an employer. This can include a wide range of expenses, such as travel costs, professional fees, and equipment purchases.
To be eligible to claim tax relief using the P87 form, an individual must be an employee and have incurred expenses that are wholly and exclusively for the purpose of their employment.
Eligible Expenses for Tax Relief
There are various types of expenses that can be claimed for tax relief using the P87 form. These include travel expenses, such as train fares and mileage, as well as professional fees, such as union subscriptions and professional memberships.
Additionally, expenses related to equipment purchases, such as laptops and mobile phones, can also be claimed, as long as they are used solely for work purposes.
Completing the P87 Form
To complete the P87 form, individuals will need to provide details of their employment, including their employer's name and address, as well as their own personal details, such as their National Insurance number and tax reference number.
They will also need to list the expenses they are claiming for, including the date and amount of each expense, as well as a brief description of what the expense was for.
Submitting the P87 Form
Once the P87 form has been completed, it should be submitted to HMRC, either online or by post. It is recommended that individuals keep a copy of the form and any supporting documentation, such as receipts and invoices, in case of any queries or disputes.
HMRC will then review the claim and notify the individual of the outcome, which may include a tax refund or an adjustment to their tax code.
Tips and Considerations
It is essential to ensure that all expenses claimed are genuine and relate solely to employment. HMRC may request evidence to support claims, so it is crucial to keep accurate records and receipts.
Additionally, individuals should be aware of the deadlines for submitting the P87 form, as claims can only be made for expenses incurred in the current or previous tax year.
Frequently Asked Questions
What is the deadline for submitting a P87 form?
The deadline for submitting a P87 form is the 31st January following the end of the tax year in which the expenses were incurred.
Can I claim tax relief on expenses that have been reimbursed by my employer?
No, only expenses that have not been reimbursed by an employer can be claimed for tax relief using the P87 form.
Do I need to keep receipts for expenses claimed on the P87 form?
Yes, it is recommended that individuals keep receipts and other supporting documentation for expenses claimed, in case of any queries or disputes with HMRC.
Can I claim tax relief on expenses incurred while working from home?
Yes, expenses incurred while working from home, such as utility bills and equipment purchases, can be claimed for tax relief, as long as they are used solely for work purposes.
How long does it take to process a P87 form?
The time it takes to process a P87 form can vary, but typically HMRC will respond within a few weeks of receiving the claim.
Can I submit a P87 form online?
Yes, individuals can submit a P87 form online through the HMRC website, or by post, using the address provided on the form.