Understanding the HMRC Expenses Claim Form P87: A Comprehensive Guide
- Adil Akhtar
- Nov 14, 2022
- 28 min read
Updated: 15 hours ago
The HMRC Expenses Claim Form P87 is a crucial tool for UK employees looking to claim tax relief on work-related expenses that haven’t been reimbursed by their employers. Whether it's travel expenses, uniform costs, or subscriptions to professional organisations, the P87 form simplifies the process of recovering out-of-pocket expenses.
This guide covers the updated rules, criteria, and practical examples to help you make an informed claim. Let’s dive into the details of what makes the P87 form indispensable for UK taxpayers.
Demystifying the HMRC P87 Form for UK Taxpayers in 2025-26
So, you’re a UK employee who’s spent your own cash on work-related expenses, and you’re wondering how to get some of that money back from HMRC. The P87 form is your golden ticket, but it’s not as daunting as it sounds. In this first part, we’ll break down exactly what the P87 form is, who can use it, and what’s changed for the 2025-26 tax year. We’ll dive into the nitty-gritty details, backed by the latest rules from GOV.UK, to help you claim tax relief without breaking a sweat.
What Is the HMRC P87 Form and Why Should You Care?
Let’s start with the basics: the P87 form, officially titled “Tax Relief for Expenses of Employment,” is a way for UK employees under the Pay As You Earn (PAYE) system to claim tax relief on work-related expenses that their employer hasn’t reimbursed. Think of it like telling HMRC, “Hey, I’ve shelled out for stuff I need to do my job—can you cut me some slack on my taxes?” If you’re paying tax on your income and have spent up to £2,500 on allowable expenses in a tax year, this form is your go-to. For the 2025-26 tax year, the personal allowance remains at £12,570, meaning you don’t pay income tax on earnings up to that amount. Any valid expense you claim reduces your taxable income, putting money back in your pocket—typically at your tax rate (20% for basic rate taxpayers, 40% for higher rate, or 45% for additional rate).
For example, if you’re a nurse like Aled from Swansea who’s spent £125 a year cleaning your uniform, and you’re a basic rate taxpayer, you could get £25 back (20% of £125). It’s not the full amount, but it’s better than nothing. The catch? You need to know what qualifies and how to navigate the process, especially with HMRC’s tightened rules in 2025.
Who Can Use the P87 Form?
Now, not everyone can just pick up a P87 and start claiming. You need to tick a few boxes to be eligible. First, you must be an employee under PAYE, not self-employed (self-employed folks handle expenses through Self Assessment). Second, your total claim for a tax year must be £2,500 or less—anything more, and you’ll need to file a Self Assessment tax return. Third, you must have paid tax in the year you’re claiming for, and your employer (or anyone else) must not have fully reimbursed you for the expenses. So, if your boss covers every penny of your work-related costs, you’re out of luck—no tax relief for you.
Here’s a quick rundown of who might use the P87:
Construction workers like Sioned from Cardiff, driving to temporary sites and paying for fuel out of pocket.
Teachers like Rhys from Wrexham, buying classroom supplies that the school doesn’t cover.
Nurses or healthcare workers like Lowri from Bangor, paying to clean or repair uniforms. You can claim for the last four tax years, so in 2025-26, you’ve got until 5 April 2030 to claim for expenses from 2021-22 onwards. But don’t dawdle—keeping records gets harder the longer you wait.
What Expenses Can You Claim in 2025-26?
Be careful! Not every expense you think is work-related qualifies. HMRC is strict about what counts as “allowable expenses”—costs that are wholly, exclusively, and necessarily incurred in performing your job. Your daily commute to a permanent workplace? No dice. But travel to a temporary workplace (where you work for less than 24 months)? That’s fair game. Here’s a breakdown of common allowable expenses for 2025-26, based on HMRC’s latest guidance:
Expense Type | Details | Evidence Required |
Mileage Allowance | 45p per mile for the first 10,000 miles, 25p thereafter (cars); 24p for motorbikes; 20p for bicycles. | Mileage log with dates, postcodes, and journey reasons. |
Uniform/Work Clothing | Cleaning, repairing, or replacing uniforms (e.g., £125/year for nurses). Flat rate expenses available for certain jobs. | Receipts or proof of payment (not needed for flat rate expenses). |
Tools/Equipment | Costs for maintaining or replacing tools required for your job. | Receipts or proof of payment. |
Professional Fees/Subscriptions | Fees for professional bodies required for your job (e.g., union memberships). | Receipts showing payment amounts. |
Working from Home | £6/week (£312/year) if your contract requires home working. | Employment contract or formal agreement. |
Subsistence (Hotels/Meals) | Costs for meals or accommodation during business travel to temporary sites. | Receipts with dates and establishment names. |
For flat rate expenses, HMRC offers fixed amounts for certain jobs (e.g., £60/year for retail workers’ uniforms, £125/year for healthcare workers). These don’t require receipts, making them a hassle-free option. Check HMRC’s full list of flat rate expenses on GOV.UK to see if your job qualifies.
What’s New for 2025-26? The Latest HMRC Rules
Now, it shouldn’t surprise you that HMRC has tightened the screws on P87 claims to crack down on dodgy submissions. From 14 October 2024, new evidence requirements kicked in, and they’re still in place for 2025-26. Unless you’re claiming flat rate expenses (like uniform cleaning), you must provide supporting evidence—like receipts, mileage logs, or employment contracts—with your P87 form. This is a big shift from the past, when HMRC often processed claims without upfront checks. Why the change? They’ve seen a spike in ineligible claims, especially from “high volume agents” (HVAs) pushing dubious refunds, sometimes pocketing hefty fees.
From 23 December 2024, you can submit claims using HMRC’s online iForm through the Government Gateway, which is a relief after a temporary postal-only period. The online form is faster and lets you upload evidence digitally, avoiding postal delays. But if you prefer paper, you can still download the P87 from GOV.UK, complete it, and send it to: Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS. Just don’t expect a quick turnaround—HMRC’s postal processing can take 10-12 weeks.
How Much Can You Get Back?
None of us loves maths, but understanding your potential refund is key. The P87 doesn’t give you back the full expense amount—just the tax you paid on it. Let’s say you’re a site manager like Owain from Newport, driving 8,000 miles to temporary sites in 2025-26. At 45p per mile, that’s £3,600 in expenses. If you’re a 20% taxpayer, you’d get £720 back (20% of £3,600). If your employer paid you 25p per mile (£2,000), you can only claim the difference (£1,600), netting £320 in relief. For higher rate taxpayers (40%), the refund doubles to £1,440 for the full claim.
Here’s a quick table to show how tax rates affect your refund:
Expense Amount | 20% Taxpayer Refund | 40% Taxpayer Refund | 45% Taxpayer Refund |
£100 | £20 | £40 | £45 |
£1,000 | £200 | £400 | £450 |
£2,500 | £500 | £1,000 | £1,125 |
If you claim during the current tax year, HMRC usually adjusts your tax code, reducing your monthly tax bill. For past years, you’ll get a lump sum refund by cheque or bank transfer. Always double-check your tax code afterwards to avoid over- or under-taxing.
Step-by-Step Guide to Completing the P87 Form
So, the question is: how do you actually fill out this form without messing it up? Here’s a practical guide to get it right:
Get the Form: Download the latest P87 from GOV.UK or request a paper copy from HMRC. Use the version updated from 26 February 2024—older forms will be rejected.
Gather Your Details: You’ll need your National Insurance number, employer’s PAYE number (from your payslip), and employee number (if applicable).
List Your Expenses: Detail each expense type (e.g., mileage, uniforms). For mileage, include a log with dates, postcodes, and reasons for travel. For other expenses, collect receipts or proof of payment.
Calculate Your Claim: Total your expenses for the tax year (up to £2,500). If claiming for multiple jobs, use a separate P87 for each.
Submit Evidence: Attach copies of receipts, logs, or contracts (except for flat rate expenses). For online submissions, upload digital copies via the iForm.
Sign and Send: If using paper, sign the form and post it to HMRC. For online claims, submit through your Government Gateway account.
Track Your Claim: Save a copy of your submission and note any HMRC receipt number. Expect 10-12 weeks for processing.
By following these steps, you’ll avoid common pitfalls like missing evidence or mixing tax years. In the next part, we’ll dig into real-life scenarios, common mistakes, and how to maximise your claim while staying on HMRC’s good side.Ineligible Expenses: Ensure the claimed expenses align with HMRC’s criteria.
Practical Scenarios and Detailed Examples for HMRC Form P87 Claims
Simplifying Complex Claims with Real-Life Examples
While the basics of HMRC Form P87 are clear, the actual process of identifying and claiming eligible expenses can feel daunting. In this section, we’ll break down practical scenarios and examples to illustrate how various taxpayers can effectively claim tax relief using Form P87.
Understanding Eligible and Ineligible Expenses
One of the most critical aspects of filing a successful P87 claim is understanding what qualifies as an eligible expense. Let’s first recap the categories with some real-life applications:
Eligible Expenses
Uniform and Protective Clothing: Expenses for required uniforms or safety equipment not reimbursed by your employer.
Mileage Costs: Using a personal vehicle for work-related travel (not commuting).
Professional Subscriptions: Fees for memberships in approved organizations directly related to your job.
Tools and Equipment: Items required for performing your duties that aren’t covered by your employer.
Working from Home: Increased costs for utilities or other necessities due to a home office setup.
Ineligible Expenses
Daily commuting costs between your home and your regular workplace.
Expenses fully reimbursed by your employer.
Costs not directly related to performing your job duties (e.g., personal subscriptions).
Scenario 1: Claiming for Uniform and Clothing Expenses
Example: Emily is a nurse employed by an NHS trust. Her role requires her to wear a specific uniform that she cleans at home. Her employer doesn’t reimburse these costs. Emily can claim a flat-rate expense of £125 per year for uniform maintenance.
Tax relief for basic rate taxpayers (20%): £125 × 20% = £25.
Tax relief for higher rate taxpayers (40%): £125 × 40% = £50.
Additional Tip: If Emily’s actual cleaning costs exceed the flat rate, she can claim the exact amount but must provide receipts for laundry products or dry cleaning.
Scenario 2: Mileage and Travel Claims for Field Workers
Example: James is a sales representative who travels to client sites using his car. In the 2023/24 tax year, he drove 12,000 work-related miles.
Approved mileage rate for the first 10,000 miles: 45p per mile.
Rate for miles exceeding 10,000: 25p per mile.
James’s claim:
10,000 miles × 45p = £4,500.
2,000 miles × 25p = £500.
Total mileage claim = £5,000.
As a basic rate taxpayer, James would receive £5,000 × 20% = £1,000 in tax relief.
Scenario 3: Professional Subscriptions for Accountants
Example: Sophia is a chartered accountant who pays £300 annually for her membership with the Association of Chartered Certified Accountants (ACCA), which is approved by HMRC.
Tax relief for higher rate taxpayers (40%): £300 × 40% = £120.
If Sophia is unsure whether her membership qualifies, she can refer to the official HMRC list of approved professional bodies, updated yearly.
Scenario 4: Working from Home Claims for Remote Employees
Example: Mark works as a software developer and is required by his employer to work from home. His employer does not provide a home office allowance, so he incurs additional heating and electricity costs.
Flat-rate claim: £6 per week.
Annual tax relief for basic rate taxpayers: £312 × 20% = £62.40.
Annual tax relief for higher rate taxpayers: £312 × 40% = £124.80.
If Mark’s actual expenses are higher, he can claim the exact amounts. For instance, if his bills increased by £500 due to remote work:
Basic rate taxpayers: £500 × 20% = £100.
Higher rate taxpayers: £500 × 40% = £200.
However, Mark must provide detailed evidence such as utility bills showing the increased costs.
Scenario 5: Partial Reimbursement by Employers
Example: Alex works as an architect and drives his personal car for site visits. His employer reimburses him 25p per mile, but HMRC’s approved rate is 45p per mile.
Claimable difference: 45p - 25p = 20p per mile.
If Alex drives 5,000 work miles:
5,000 miles × 20p = £1,000 claimable.
Tax relief for basic rate taxpayers: £1,000 × 20% = £200.
Tax relief for higher rate taxpayers: £1,000 × 40% = £400.
Submitting Claims for Multiple Tax Years
Example: Retrospective Claims
HMRC allows taxpayers to backdate claims for up to four years. For instance:
If you incurred eligible expenses in the 2019/20 tax year, you must file your claim by 5 April 2024.
Example: Liam, a teacher, claims £60 annually for professional subscriptions. He hasn’t claimed for the past four years:
Total claim: £60 × 4 = £240.
Tax relief for basic rate taxpayers: £240 × 20% = £48.
Tax relief for higher rate taxpayers: £240 × 40% = £96.
Navigating Complex Claims: Tips and Tricks
1. Organizing Your Records
Keep a detailed log of:
Mileage, including dates, destinations, and reasons for trips.
Receipts for tools, subscriptions, and other expenses.
Utility bills and employment contracts for working-from-home claims.
2. Using HMRC’s Resources
Download the P87 guidance notes available on the HMRC website to clarify complex sections. These notes provide line-by-line explanations for completing the form.
3. Seeking Professional Advice
For intricate cases, consider consulting a tax advisor or accountant. Their expertise can maximize your claim, especially if it involves overlapping rules or partial reimbursements.
New Updates as of January 2025
HMRC introduced several updates to streamline P87 claims:
Digital Submission Enhancements: While postal submission remains mandatory, HMRC plans to trial online submission options starting late 2025.
Flat-Rate Adjustments: The flat rate for uniform maintenance increased from £120 to £125 in the Autumn 2024 Budget.
How to Complete HMRC Form P87 Step by Step
Filling Out the P87 Form with Confidence
Navigating tax paperwork can seem overwhelming, but completing HMRC Form P87 doesn’t have to be. In this section, we’ll provide a detailed, step-by-step guide to help you fill out the form accurately. With practical tips and clear instructions, you’ll be equipped to claim your tax relief with ease.
Step 1: Downloading the Form
Visit the official HMRC website and search for "Tax Relief for Expenses of Employment (P87)."
Download the latest version of the form. Ensure you use the most recent update, as older forms may not be accepted.
Open the form using Adobe Reader, which is required for proper formatting. You can either complete it on-screen or print it out and fill it manually.
Step 2: Basic Personal Information
The first section of the form requires your personal details. Accuracy here is critical to ensure your claim is processed without delays.
What to Fill Out:
Your Name: Provide your full legal name as it appears on HMRC records.
National Insurance Number: Double-check this for accuracy; it’s used to link your claim to your tax record.
Address: Ensure it matches the address HMRC has on file. If you’ve recently moved, update HMRC before submitting your claim.
Date of Birth: This helps HMRC verify your identity.
Pro Tip: If you’ve changed your name or address recently, inform HMRC beforehand to avoid processing delays.
Step 3: Employment Details
This section identifies your employer and your role. Here’s what you need:
Details to Include:
Employer’s Name: The official name of your employer.
PAYE Reference Number: This is found on your payslip or P60. It helps HMRC identify your employer’s tax records.
Your Job Title: Clearly state your role, as this can determine the type of expenses you’re eligible to claim.
Employment Period: If you’re claiming for a specific tax year or job, indicate the start and end dates of your employment.
Example:
Employer’s Name: ABC Logistics Ltd.
PAYE Reference: 123/AB45678.
Job Title: Delivery Driver.
Employment Period: 6 April 2023 – 5 April 2024.
Step 4: Claim Details
A. What Are You Claiming For?
This is the most crucial section of the form. You must detail the type of expenses you’re claiming and provide supporting information.
Mileage Allowance: Include the number of miles driven for work and your vehicle type.
Approved Rates:
Cars/vans: 45p per mile for the first 10,000 miles, then 25p per mile.
Motorcycles: 24p per mile.
Bicycles: 20p per mile.
Example Entry for Mileage Claims:
Total Miles Driven: 8,500.
Claim Amount: 8,500 × 45p = £3,825.
Uniform/Clothing Costs: Indicate whether you’re claiming the flat-rate allowance or the exact amount.
Flat Rate: Simply check the box for "Flat Rate" and specify the year.
Actual Costs: Include receipts for laundry or clothing purchases.
Professional Subscriptions: List the organization(s) and the exact membership fees paid. Ensure the organization is HMRC-approved.
Working from Home: Indicate whether you’re claiming the flat rate (£6 per week) or actual expenses. Provide evidence such as utility bills if claiming the latter.
B. Break Down by Tax Year
You may claim for multiple tax years on a single form. Use separate rows for each tax year and specify the corresponding expenses.
Tax Year | Expense Type | Claim Amount | Evidence Provided |
2023/24 | Mileage (8,500 miles) | £3,825 | Mileage Log |
2023/24 | Uniform Maintenance | £125 | N/A (Flat Rate) |
2022/23 | Professional Subscription (ACCA) | £300 | Membership Invoice |
Pro Tip: Use a spreadsheet to calculate and organize your claims before filling out the form.
Step 5: Evidence and Supporting Documents
HMRC requires proof for most claims. Attach clear and legible copies of the following:
Receipts: For subscriptions, uniforms, and equipment purchases.
Mileage Logs: Include journey dates, start and end postcodes, purpose of travel, and total miles.
Utility Bills: For working-from-home claims (if not using the flat rate).
Example of a Mileage Log Entry:
Date | Start Location | Destination | Reason for Journey | Miles |
10/05/2024 | SW1A 1AA | SE1 7PB | Client Meeting | 12 |
15/05/2024 | SW1A 1AA | W1A 1HQ | Training Session | 8 |
Step 6: Declaration and Signature
The final section requires you to declare that the information provided is accurate. Here’s how to complete it:
Signature: Sign and date the form.
Agent Details: If an agent is filing on your behalf, their details must be included in the relevant section.
Step 7: Submitting the Form
Double-check the form and ensure all sections are complete.
Attach all required evidence securely.
Mail your completed form to:
Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS
Processing Times and What Happens Next
HMRC Processing Timeline:
Claims are typically processed within 8-12 weeks.
You’ll receive the tax relief as a refund, often directly into your bank account if HMRC holds your payment details.
Tracking Your Claim:
If you haven’t received a response after 12 weeks, contact HMRC’s helpline to check the status of your claim. Be ready to provide your National Insurance number and the date you submitted the form.
Tips for a Successful Claim
Be Detailed: Provide as much information as possible in each section to avoid follow-up queries.
Attach Proper Evidence: Lack of documentation is a common reason for delays or rejections.
Submit Early: Avoid the year-end rush by filing as soon as you’re eligible.
How to Fill Form P87 Properly - A Question by Question Guide
The HMRC P87 form is used by employees to claim tax relief on unreimbursed work-related expenses, such as professional subscriptions, mileage, or working-from-home costs. This guide walks you through each section and question, providing sample answers to help you complete the form accurately. Ensure your total claim per tax year is £2,500 or less, and complete all mandatory fields (marked with * in the form) to avoid rejection.
Section 1: Personal and Employment Details
This section collects your personal information. All fields are mandatory.
1.1 TitleEnter your title (e.g., Mr, Mrs, Miss, Ms, Dr).Sample answer: Mr
1.2 Your surname or family nameEnter your last name.Sample answer: Smith
1.3 First namesEnter your first and middle names (if applicable).Sample answer: John David
1.4 AddressProvide your full residential address, including house number, street, and city.Sample answer: 123 High Street, LondonPostcodeEnter your postal code.Sample answer: SW1A 1AA
1.5 Contact phone numberProvide a phone number where HMRC can contact you.Sample answer: 020 7946 0000
1.6 Date of birthEnter your birth date in DD MM YYYY format.Sample answer: 01 01 1980
1.7 National Insurance number if you have oneEnter your National Insurance (NI) number, essential for tax identification.Sample answer: AB123456C
Section 2: Employment Details
This section records details of your employment(s) for which you’re claiming expenses. Use columns A to E for the current tax year and up to the last four completed tax years (ending 5 April). For multiple employments in one year, refer to Section 2 of the P87 Notes.
For each tax year claimed:
2.1 Employer PAYE referenceEnter your employer’s tax reference number (found on your P45, P60, or payslip).Sample answer: 123/A246
2.2 Job titleEnter your job role.Sample answer: Carer
2.3 Employer nameEnter your employer’s name.Sample answer: Care Services Ltd
2.4 First line of employer addressProvide the first line of your employer’s address.Sample answer: 456 Business Park
2.5 Employer postcodeEnter your employer’s postcode.Sample answer: EC1A 1BB
2.6 Type of IndustryRequired only for flat rate expense claims. Specify your industry (e.g., Healthcare, Retail).Sample answer: Healthcare
2.7 Employee numberEnter your employee number (if applicable).Sample answer: EMP12345
Section 3: Flat Rate Expenses
Flat rate expenses are fixed amounts you can claim based on your job type, no receipts required. Check HMRC’s list for eligible rates (e.g., £60 for retail, £125 for nurses).
3.1 Flat rate expense deduction
Enter the flat rate amount for your job type per tax year.
Sample answer: £60
Section 4: Subscriptions to Professional Bodies
Claim fees or subscriptions to professional bodies required for your job.
4.1 Name of professional bodyEnter the organization’s name.Sample answer: Royal College of Nursing
4.2 Amount of subscription and or feeEnter the total amount you paid.Sample answer: £200
4.3 Amount repaid to youEnter any reimbursement from your employer.Sample answer: £0
4.4 Expenses claimedSubtract 4.3 from 4.2 for the net amount claimed.Sample answer: £200
Section 5: Mileage Allowance
Claim expenses for using your own vehicle for work. This section includes subsections for cars and vans, motorcycles, and cycles. We’ll use cars and vans as an example. Complete the mileage allowance relief section if you fill in any vehicle subsection.
Cars and Vans
5.1 Total business mileageEnter total miles driven for work in the tax year.Sample answer: 2000
5.2 Mileage amount up to first 10,000 milesEnter miles up to 10,000 (all 2000 in this case).Sample answer: 2000
5.3 Mileage multiplied by 45pCalculate 2000 × 45p = £900.Sample answer: £900
5.4 Mileage amount over 10,000 milesEnter miles over 10,000 (0 here).Sample answer: 0
5.5 Mileage multiplied by 25pCalculate 0 × 25p = £0.Sample answer: £0
5.6 Maximum tax-free amount (cars and vans)Add 5.3 + 5.5 (£900 + £0).Sample answer: £900
Mileage Allowance Relief
5.11 Maximum tax-free amountSum of 5.6 (cars), 5.8 (motorcycles), and 5.10 (cycles). Here, just £900.Sample answer: £900
5.12 Total mileage allowance payments received from your employerEnter any mileage payments from your employer.Sample answer: £0
5.13 Total mileage allowance reliefSubtract 5.12 from 5.11 (£900 - £0).Sample answer: £900
Note: If 5.12 is £0, attach mileage logs to your claim.
Section 6: Hotel and Meal Expenses
Claim costs from business trips (e.g., accommodation, meals). For frequent trips, see Section 6 of the P87 Notes.
6.1 Where you stayedEnter the location or hotel name.Sample answer: Hilton Manchester
6.2 Amount spent on allowable itemsEnter total spent on accommodation and meals.Sample answer: £150
6.3 Date or number of overnight staysEnter dates or number of nights.Sample answer: 2 nights
6.4 Amount repaid to youEnter any reimbursement.Sample answer: £50
6.5 Total expenses claimedSubtract 6.4 from 6.2 (£150 - £50).Sample answer: £100
Section 7: Other Expenses
Claim other allowable work-related expenses (e.g., working from home).
7.1 Description of expensesDescribe the expense (e.g., WFH for working from home).Sample answer: WFH
7.2 Amount of expenseEnter the total spent.Sample answer: £312
7.3 Amount repaid to youEnter any reimbursement.Sample answer: £0
7.4 Total expenses claimedSubtract 7.3 from 7.2 (£312 - £0).Sample answer: £312
Section 8: Amount Repaid to You by Your Employer
Record additional reimbursements not declared elsewhere.
8.1 Type of expenses receivedDescribe the reimbursement type.Sample answer: Travel expenses
8.2 Amount receivedEnter the total reimbursed.Sample answer: £200
Section 9: Total Expenses
Calculate your total claim per tax year. If over £2,500, file a Self Assessment tax return instead.
9.1 Total net allowable expenses that you are claiming for the year
Add 3.1 + 4.4 + 5.13 + 6.5 + 7.4, then subtract 8.2.
Sample calculation:
Flat rate: £60
Subscriptions: £200
Mileage: £900
Hotel/meals: £100
Other: £312
Total: £60 + £200 + £900 + £100 + £312 = £1572
Subtract 8.2: £1572 - £200 = £1372
Sample answer: £1372
Section 10: How You Want to Be Paid
Specify how to receive your refund.
10.1 Who do you want the cheque made payable to?
Choose “Make the cheque payable to me” or nominate someone else (provide nominee details if applicable).
Sample answer: Make the cheque payable to me
Declaration
Sign and date the form to confirm accuracy.
Full name
Sample answer: John David Smith
Date
Sample answer: 15 06 2025
Signature
Sign here.
Final Steps
Review all entries for accuracy.
Attach documents only if claiming fuel costs for a company car or mileage with no reimbursement (e.g., mileage logs).
Copy the form for your records.
Send to:
Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS
This guide ensures you claim your entitled tax relief efficiently. For further clarification, consult HMRC’s guidance or a tax professional.
Maximising Your P87 Claim and Avoiding Common Pitfalls in 2025-26
Right, so you’ve got the basics of the P87 form down—now let’s get into the meat of how to make the most of it. This part dives into practical strategies to boost your claim, real-life scenarios to illustrate how it works, and the mistakes that could trip you up. We’ll also tackle some less obvious aspects, like dealing with HMRC’s scrutiny and handling complex cases, all tailored for UK taxpayers and business owners in the 2025-26 tax year. Let’s make sure you’re not leaving money on the table or landing in hot water with HMRC.
How Can You Maximise Your P87 Claim?
Now, if you’re thinking, “I want every penny I’m entitled to,” you’re not alone. Maximising your P87 claim starts with knowing exactly what you can include and keeping meticulous records. For instance, if you’re a delivery driver like Eleri from Bristol, every mile you drive to temporary locations counts at 45p per mile (up to 10,000 miles). Miss a few trips in your log, and you’re short-changing yourself. Use a spreadsheet or app to track mileage with dates, postcodes, and reasons for travel—HMRC loves precision. In 2025-26, you can claim for up to four previous tax years (back to 2021-22), so dig out old records to see if you’ve missed anything.
Another trick is to check if your job qualifies for flat rate expenses. These are fixed amounts HMRC allows for certain roles without needing receipts. For example, a joiner like Dafydd from Carmarthen can claim £140/year for tools and clothing maintenance, no questions asked. Combining flat rate expenses with actual costs (like mileage) can boost your claim without extra paperwork. Just don’t double-dip—claiming both flat rate and actual costs for the same expense is a red flag for HMRC.
What Are the Most Common Mistakes to Avoid?
Be careful! The P87 form might seem straightforward, but it’s easy to slip up. One of the biggest blunders is claiming expenses that don’t qualify. Take Gareth, a teacher from Llanelli, who tried to claim his commute to school. HMRC rejected it because regular commuting isn’t “wholly, exclusively, and necessarily” for work. Another common error is sloppy evidence. Since October 2024, HMRC requires receipts or logs for most claims (except flat rates). Submitting a P87 without proof is like turning up to a job interview in pyjamas—it’s not going to end well.
Here’s a quick list of pitfalls to dodge:
Claiming non-allowable expenses: Lunches, regular commuting, or personal clothing don’t count.
Missing deadlines: You’ve got until 5 April 2030 for 2021-22 claims, but don’t wait—records fade.
Incomplete forms: Forgetting your National Insurance number or employer PAYE reference delays processing.
Mixing tax years: Use a separate P87 for each tax year to avoid confusion.
Overclaiming: Exceeding £2,500 means you need a Self Assessment return, not a P87.
If you’re unsure, double-check HMRC’s guidance on GOV.UK or call their helpline at 0300 200 3300. It’s better to ask than to face a rejected claim.
What Happens If HMRC Questions Your Claim?
Now, consider this: If HMRC raises an eyebrow at your P87, don’t panic—it’s not the end of the world. Since 2024, HMRC has cracked down on questionable claims, especially those filed by high volume agents (HVAs) who charge steep fees for dubious refunds. If your claim is flagged, you’ll get a letter asking for more evidence or clarification. For example, Nia, a nurse from Aberystwyth, claimed £500 for uniform cleaning but forgot to specify it was for her NHS role. HMRC asked for her contract to confirm it was required for work. She sent it, and her claim was approved.
To handle HMRC’s scrutiny:
Respond promptly with clear, organised evidence (e.g., scanned receipts or a detailed mileage log).
Be honest—don’t inflate expenses to “test” HMRC. They cross-check PAYE records and employer data.
If rejected, you can appeal within 30 days, but you’ll need solid proof to overturn their decision.
Real-Life Case Studies: How P87 Claims Work in Practice
So, the question is: how does the P87 play out in real life? Let’s look at two scenarios from the 2024-25 tax year, still relevant for 2025-26 due to unchanged rules.
Case Study 1: Iwan, the IT Contractor from Newport
Iwan, an IT consultant, worked at a client’s site in Swansea for 18 months (a temporary workplace). He drove 12,000 miles in 2024-25, claiming 10,000 miles at 45p (£4,500) and 2,000 at 25p (£500), totalling £5,000. Since this exceeded the £2,500 P87 limit, he had to file a Self Assessment return. Had he claimed for just 5,000 miles (£2,250), he could’ve used the P87 and got £450 back as a 20% taxpayer. Lesson: Know the £2,500 cap and plan accordingly.
Case Study 2: Seren, the Retail Worker from Bangor
Seren, a shop assistant, spent £80 on cleaning her work uniform and claimed the £60 flat rate expense for retail workers. She also paid £120 for a professional subscription required by her employer. Her total claim was £180, netting her £36 as a 20% taxpayer. She submitted online via the Government Gateway, attaching receipts for the subscription. Her claim was processed in 8 weeks, and her tax code was adjusted for 2025-26. Lesson: Combining flat rate and actual expenses can maximise your refund with minimal hassle.
How Do Complex Situations Affect Your P87 Claim?
None of us wants to deal with tax complications, but they happen. Let’s say you’re like Ceri, a part-time lecturer from Cardiff who works for two employers. You can submit a separate P87 for each job, but you’ll need each employer’s PAYE reference and proof that expenses were unreimbursed. If one employer partially reimburses you (e.g., 20p per mile instead of 45p), you can claim the difference (25p per mile). Keep clear records to avoid mixing up expenses.
Another tricky scenario is working from home. If your contract requires it, you can claim £6/week (£312/year) in 2025-26. But if you choose to work from home for convenience, HMRC will reject it. For example, Tomos, a graphic designer from Pembrokeshire, claimed £312 for 2024-25 but was asked for his contract. Without it, his claim was denied. Always check your employment terms before claiming.
How Does the P87 Affect Your Tax Code or Refund?
Now, it shouldn’t be a surprise that claiming expenses changes how HMRC taxes you. If you claim mid-year (e.g., in 2025-26), HMRC adjusts your tax code to reduce your taxable income, spreading the relief over your remaining paychecks. For past years, you’ll get a lump sum refund. For example, if you claim £1,000 for 2023-24 as a 40% taxpayer, you’d get £400 back, typically by bank transfer within 12 weeks.
Here’s a table showing how claims impact refunds for different tax bands in 2025-26:
Claim Amount | 20% Taxpayer (Basic Rate) | 40% Taxpayer (Higher Rate) | 45% Taxpayer (Additional Rate) |
£500 | £100 | £200 | £225 |
£1,500 | £300 | £600 | £675 |
£2,500 | £500 | £1,000 | £1,125 |
Always check your payslip after a tax code change to ensure it’s correct. Mistakes can lead to over- or under-taxing, which might mean owing HMRC later.
What If You Use a Tax Agent?
So, you’re tempted to hire a tax agent to handle your P87? Proceed with caution. While some agents are legit, others charge 30-50% of your refund for simple claims you could do yourself. In 2024, HMRC warned about HVAs misleading clients into claiming ineligible expenses, leading to penalties. If you use an agent, ensure they’re registered with a body like the Association of Taxation Technicians. Better yet, try the online iForm first—it’s free and straightforward.18/19 tax year submitted after 5 April 2023 was denied.
Summary of Key Points for Mastering the P87 Form in 2025-26
Right, let’s wrap this up with a clear, concise rundown of the most critical takeaways for using the HMRC P87 form in the 2025-26 tax year. Whether you’re an employee like a nurse, teacher, or construction worker, or a small business owner managing PAYE staff, these points will keep you on track to claim tax relief confidently and avoid any hiccups with HMRC. Below are the ten most important points, each boiled down to a single sentence for easy reference.
Summary of the Most Important Points
The P87 form allows UK employees under PAYE to claim tax relief on unreimbursed work-related expenses up to £2,500 per tax year, reducing taxable income based on your tax rate.
Eligible expenses include mileage to temporary workplaces, uniform cleaning, tools, professional subscriptions, and working-from-home costs, but only if wholly, exclusively, and necessarily for your job.
Flat rate expenses, like £125/year for nurses or £140/year for joiners, don’t require receipts and can simplify claims for specific job roles.
From October 2024, HMRC requires evidence like receipts or mileage logs for most claims, except flat rate expenses, to combat ineligible submissions.
You can claim for the last four tax years (back to 2021-22 in 2025-26), with a deadline of 5 April 2030 for the earliest year.
Online submissions via the Government Gateway’s iForm, available since December 2024, are faster than postal claims, which can take 10-12 weeks to process.
Claims over £2,500 or from multiple employers require separate P87 forms or a Self Assessment return, depending on the total amount.
Common mistakes, like claiming non-allowable expenses (e.g., regular commuting) or missing evidence, can lead to rejected claims or HMRC scrutiny.
Successful claims adjust your tax code for current-year relief or result in a lump sum refund for past years, typically at 20%, 40%, or 45% of the expense amount.
Using high volume agents can be risky due to high fees and dubious claims, so consider filing yourself or choosing a reputable, registered tax professional.
How a Tax Accountant Can Help You Claim Tax Relief on Your Expenses
Navigating the labyrinthine world of tax codes, forms, and regulations can be a daunting task for anyone. Whether you're an individual or a business owner, understanding how to claim tax relief on your expenses in the UK can be complicated. This is where a tax accountant comes into play. A tax accountant is not just a number cruncher; they are financial advisors who can guide you through the complex tax landscape, ensuring you take advantage of every tax relief option available to you. Here's how a tax accountant can assist you in claiming tax relief on your expenses in the UK.
Expertise in Tax Laws and Regulations
Tax laws are ever-changing, and keeping up with the latest amendments is a full-time job. A tax accountant is well-versed in the current tax laws, including those specific to the UK, and can provide expert advice on how you can benefit from various tax reliefs. They can identify which expenses are allowable and how to maximize your claims, ensuring you don't miss out on any opportunities to reduce your tax liability.
Personalized Financial Planning
Every individual or business has unique financial circumstances. A tax accountant can offer personalized financial planning tailored to your specific needs. They can assess your income, expenditures, and financial goals to develop a tax strategy that aligns with your objectives. This includes identifying the types of expenses you can claim tax relief on, such as professional fees, mileage, or even work-from-home costs.
Accurate and Timely Filing
Filling out tax forms can be confusing and time-consuming. One small mistake can lead to delays in processing your claim or, worse, a tax investigation. A tax accountant can meticulously prepare and file your tax returns, ensuring accuracy and compliance with the law. They can help you fill out complex forms like the P87 for claiming tax relief on employment expenses, making sure every section is completed correctly.
Assistance with Documentation
Proper documentation is crucial when claiming tax relief on expenses. You'll need to provide evidence like receipts, invoices, and mileage logs to support your claims. A tax accountant can help you organize these documents, advising you on what records to keep and for how long. They can also assist in digitalizing your records, making it easier to retrieve them if needed for an audit or review by HMRC.
Representation in Tax Audits
If you're unfortunate enough to be selected for a tax audit, having a tax accountant by your side can be invaluable. They can represent you in discussions with HMRC, providing all the necessary documentation and explanations to substantiate your claims. Their expertise can often expedite the audit process and may result in a more favorable outcome.
Ongoing Support and Advice
A tax accountant's role doesn't end once your tax return is filed. They offer ongoing support and can update you on any changes in tax laws that could affect your future claims. Many tax accountants also provide year-round consultation services, helping you plan your expenses and claims in real-time, rather than scrambling at the end of the tax year.
In short, a tax accountant is an indispensable resource for claiming tax relief on your expenses in the UK. Their expertise in tax laws, personalized financial planning, and meticulous attention to detail can save you time and money, ensuring you make the most of the tax relief options available to you. Whether you're an individual or run a business, investing in a tax accountant can offer you peace of mind and financial benefits in the long run.
FAQs
Q1. **Can you claim tax relief on expenses if you’re self-employed using the P87 form?**
A. No, the P87 form is only for employees under PAYE; self-employed individuals claim expenses through a Self Assessment tax return.
Q2. **What happens if you miss the deadline for submitting a P87 claim?**
A. If you miss the deadline (5 April, four years after the tax year), you lose the ability to claim tax relief for that year’s expenses.
Q3. **Can you claim expenses on the P87 form if you’re on a zero-hours contract?**
A. Yes, as long as you’re an employee under PAYE and the expenses are wholly, exclusively, and necessarily for your job.
Q4. **Do you need to submit a P87 form every year for recurring expenses?**
A. Yes, you must submit a new P87 for each tax year, but HMRC may adjust your tax code for ongoing claims.
Q5. **Can you claim tax relief for expenses incurred abroad using the P87 form?** A. Yes, if the expenses are for work-related activities required by your UK employment and meet HMRC’s allowable criteria.
Q6. **What should you do if you lose your receipts for P87 expenses?**
A. You can use bank statements or other proof of payment, but flat rate expenses don’t require receipts.
Q7. **Can you claim tax relief for training courses using the P87 form?**
A. Yes, if the training is required to perform your current job duties and your employer doesn’t reimburse you.
Q8. **How do you know if your P87 claim has been processed by HMRC?**
A. HMRC will send a letter or update your Personal Tax Account confirming the claim, typically within 10-12 weeks.
Q9. **Can you amend a P87 claim after submission if you made an error?**
A. Yes, contact HMRC’s helpline at 0300 200 3300 to correct errors or resubmit with a cover letter explaining changes.
Q10. **Are there penalties for submitting an incorrect P87 claim?**
A. Yes, providing false information can lead to penalties or prosecution, so ensure all details are accurate.
Q11. **Can you claim tax relief for buying work-specific clothing on the P87 form?**
A. No, only costs for cleaning, repairing, or replacing uniforms or protective clothing qualify, not purchasing general work attire.
Q12. **What is the process if HMRC rejects your P87 claim?**
A. You can appeal within 30 days by writing to HMRC with additional evidence to support your claim.
Q13. **Can you claim tax relief for home internet costs on the P87 form?**
A. Only if your job contract requires home working and you can prove the portion used for work, typically via itemised bills.
Q14. **How does claiming P87 expenses affect your annual tax return?**
A. P87 claims don’t typically require a tax return unless your total expenses exceed £2,500, but they may adjust your tax code.
Q15. **Can you claim P87 expenses if you’re a temporary worker through an agency?**
A. Yes, if you’re taxed under PAYE and the expenses are allowable, but you’ll need your agency’s PAYE reference.
Q16. **What should you do if your employer disputes your P87 expense claim?**
A. Provide HMRC with evidence like contracts or receipts; HMRC will assess eligibility independently of your employer’s stance.
Q17. **Can you claim tax relief for parking fees on the P87 form?**
A. Yes, if the parking is for business travel to a temporary workplace, but not for regular commuting.
Q18. **How do you calculate working-from-home expenses if you don’t claim the flat rate?**
A. You must prove actual costs (e.g., heating, electricity) proportional to work use, with detailed records like utility bills.
Q19. **Can you claim P87 expenses if you’re on maternity leave?**
A. Yes, if you incurred allowable expenses during the tax year while employed, even if on leave.
Q20. **What are the tax implications if your P87 claim results in a tax code change?**
A. A tax code change reduces your taxable income, lowering your monthly tax deductions, but you must check for accuracy to avoid under- or over-taxing.
About The Author:
Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 10 years of expertise in navigating complex tax matters. For more than three years, his insightful blogs have empowered UK taxpayers with clear, actionable advice. Leading Advantax Accountants as well, Adil blends technical prowess with a passion for demystifying finance, cementing his reputation as a trusted authority in tax education.
Email: adilacma@icloud.com
Disclaimer:
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