If you are an employee and you’re exposed to certain expenses which you need to cover yourself and that your employer does not reimburse, you might be able to get tax relief. This only applies to business expenses that relate to doing your job. There are several ways to claim tax relief depending on the circumstances. Before claiming your tax relief (P87), you should check the HMRC webpage to make sure you’re making the claims the right way.
HMRC will provide you with a reference number to track the progress of your form. You should include all expenses for the tax year you want to claim for. The amount shown on the summary page will be your total expenses for the year and HRMC will work out any refund due based on that amount.
Before you start your claim, you should gather all the necessary information. If you’re using the HMRC online service to add a new expense make sure you include anything you’ve claimed before.
If you claim an estimated amount, the HMRC will review it at the end of the tax year and adjust your tax code. You must send a claim form by post if you’re claiming either:
- on behalf of someone else
- relief for more than 5 different jobs
If you’re using the print and post form to add a new expense make sure you include anything you’ve claimed before.
You’ll need to fill in the post and print’ form online and then send it to HMRC. You will be able to find the address on the form itself. You can claim by phone if you’ve already claimed expenses in a previous year and your total expenses are less than either:
- £1,000
- £2,500 for professional fees and subscriptions
Here’s a quick list of what you might be able to claim tax relief on:
- Working from home (only applicable if you have not chosen yourself to work from home, but are forced to do so due to COVID-19 or any other reasonable circumstance)
- Uniforms, work clothing and tools
- Vehicles you use for work
- Travel and overnight expenses
- Professional fees and subscriptions
- Buying other equipment
If you’re claiming more than the flat rate expense, you’ll need to keep records and receipts, and if your employer pays you any of the costs, you must deduct this from the allowable rate.
