HMRC has issued a reminder about changes to reporting requirements when claiming income tax relief for employment expenses using form P87
The rule change comes into effect from 21 December and will require additional mandatory information requirements on the P87 form.
To make these additional requirements clear for employees, HMRC has updated the P87 form to include the following text changes:
- mandatory fields have been marked with an asterisk;
- the form reference has changed; and
- the section 'About this form' has been updated.
In a notification, HMRC said: ‘Changes to the form have been kept to a minimum and have been made to assist completion of the form. The guidance notes that accompany the P87 form have also been updated.’
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The HMRC guidance states: ‘You are able to claim for expenses relating to different employments within the same tax year. To do this you should enter the expenses for each individual employment on separate columns. Please note the total claim for each tax year must still be £2,500 or less.’
P87 claims received on or after 21 December 2022 will need to be submitted on this latest form and should include all the mandatory information.
The additional P87 mandatory information requirements are:
- all the details in section 1, except for the title and contact phone number which are optional;
- employer PAYE reference number in section 2 – clients can provide accountants with this from their Personal Tax Account, the HMRC app, P45 or P60; and
- type of industry in section 2 if the claim includes flat rate expenses.
Any P87 claims that do not include the mandatory information or have not been submitted using the latest form will be rejected.
To find out more about expenses, visit BrAInbox today where you can find answers to questions like Do I have to pay relocation expenses if I change an employee's place of work?
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