HMRC Form P87, Tax Relief for Expenses of Employment, lets PAYE employees in the UK claim income tax relief on allowable employment expenses they paid themselves and were not reimbursed for by their employer. The relief reduces the employee's taxable income at their marginal rate (20%, 40%, or 45%), so a basic-rate taxpayer claiming £600 of expenses recovers £120 of tax. Form P87 is the standard tool for one-off and modest annual claims; larger or recurring claims may require a Self Assessment return (SA100) instead.
The expense must be wholly, exclusively, and necessarily incurred in performing your job duties. Common allowable expenses include: business mileage in your own vehicle (45p per mile for the first 10,000 miles, then 25p, less any mileage allowance from the employer); professional fees and subscriptions to approved professional bodies (the HMRC list); uniform and specialist clothing cleaning, repair, or replacement (flat-rate expense allowances apply to many trades); working-from-home costs (currently £6/week without receipts, or actual costs with evidence, where home working is required by the employer); tools and equipment needed for the job; and certain travel and subsistence costs for temporary workplaces.
Form P87 can only be used for total claims of £2,500 or less per tax year. If your total claim exceeds £2,500 - or you already complete a Self Assessment return for any reason - you must report the expenses on SA100/SA102 instead. You can claim back up to four tax years from the end of the tax year you're claiming for: for example, claims for 2020/21 expenses must be submitted by 5 April 2025. Once approved, HMRC adjusts your tax code so the relief is given through PAYE going forward (or issues a refund for prior tax years).
Submit Form P87 online through your Government Gateway account, on paper by post, or by phone for straightforward claims under £1,000. The online route is fastest and confirms receipt immediately. Include details of every expense category you're claiming, any reimbursement received from your employer (which reduces the claim), employer's PAYE reference, and your National Insurance number. HMRC typically processes P87 claims within several weeks and issues either a tax-code adjustment or a refund.
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