Did you pay for work-related expenses out of your own pocket this year, like tools, uniforms, or professional fees? If so, you could be owed a tax refund from HMRC. Yet, for many, the thought of official paperwork is stressful. The worry about making a mistake on the P87 form or not knowing which expenses are ‘allowable’ is enough to stop a claim before it even starts, leaving money you’re entitled to with the taxman.
At Stewart Accounting Services, we believe claiming what you’re owed should be a smooth and simple process. That’s why we’ve created this complete guide. We’re here to take the complexity out of the P87 and give you clear, straightforward answers. We’ll walk you through exactly who can use the form, what you can claim for, and how to complete it with confidence, helping you decide if it’s the right route for you or if a Self Assessment tax return is needed.
Our goal is to give you the peace of mind that your claim is correct, ensuring you get the maximum tax relief you deserve. Let’s get your hard-earned money back where it belongs.
What is a P87 Form and Who Should Use It?
If you’re an employee who pays for work-related expenses out of your own pocket, you could be owed a tax refund from HMRC. The p87 form is the tool HMRC provides to help you claim that money back simply and efficiently. Think of it as a straightforward way to claim tax relief on costs like tools, uniforms, or business mileage that your employer hasn’t reimbursed you for.
This form is specifically designed for individuals who are employed and pay tax through the PAYE (Pay As You Earn) system. It’s not for the self-employed. The key benefit is that it allows you to get your tax refund without the stress and complexity of completing a full Self Assessment tax return, putting money you’re entitled to back in your pocket.
Key Eligibility Criteria for Using Form P87
Before you start your claim, it’s important to check if you meet the specific requirements. Using this form is a smooth process, but only if you’re eligible. To use a P87, you must meet the following criteria:
- You are an employee and have paid income tax during the tax year you are claiming for.
- Your total claimable work expenses for the tax year are less than £2,500.
- You paid for these expenses personally with your own money.
- Your employer did not pay you back for these costs, either in full or in part.
When You Cannot Use a P87 Form
While the P87 is a helpful tool for many, it isn’t suitable for every situation. You will need to use a different process, typically a Self Assessment tax return, in these circumstances:
- Your total work-related expenses for a single tax year are £2,500 or more.
- You are already required to complete a Self Assessment tax return for other reasons (such as having rental income or being a company director).
- You are self-employed or operate as a sole trader. In this case, you would claim expenses directly on your tax return.
What Expenses Can You Claim on a P87 Form?
Understanding which expenses you can claim can feel complicated, but it doesn’t have to be. The key principle HMRC uses is that the expense must be incurred “wholly, exclusively, and necessarily” in the performance of your duties. In simple terms, this means you had to spend the money to do your job, and it was only for work purposes.
To make a successful claim using a p87 form, keeping detailed records is crucial. Always hold on to receipts, invoices, and mileage logs as proof of your expenditure. Let’s break down the main categories of expenses you can claim.
Travel and Mileage Costs
If you use your own vehicle for business travel, you can claim tax relief on the mileage. It’s important to remember that this does not include your ordinary commute to your main workplace. Allowable travel includes journeys to temporary workplaces or travelling between different work sites.
You can claim using HMRC’s Approved Mileage Allowance Payments (AMAPs). For the 2024/25 tax year, the rates are:
- Cars and Vans: 45p per mile for the first 10,000 miles, and 25p per mile thereafter.
- Motorcycles: 24p per mile.
You can also claim for other travel costs like public transport fares, tolls, and necessary hotel or subsistence costs for overnight business trips.
Uniforms, Tools, and Specialist Clothing
You can claim tax relief for the cost of washing, repairing, or replacing specialist clothing or a required uniform. A common example is a uniform with a company logo that you are required to wear and maintain yourself. This is one of the most common claims, often referred to as a uniform tax refund, and it’s a straightforward way to get some money back. You can also claim for small tools you need to buy for your job. However, you cannot claim for the initial cost of buying the uniform or clothing.
Professional Fees and Subscriptions
If you pay an annual subscription to a professional body that is on HMRC’s approved list, you can claim tax relief on the fee. The membership must be necessary or relevant for your job. For example, a nurse can claim for their Nursing and Midwifery Council (NMC) fees, or an engineer could claim for their subscription to the Institution of Mechanical Engineers (IMechE).
Working From Home Expenses
If you are required to work from home regularly, you may be able to claim for the additional household costs you incur. To keep things simple, you can claim a flat rate without needing to provide receipts. For the 2024/25 tax year, this is £6 per week. This is designed to cover extra expenses like heating and electricity used while you are working.
How to Fill Out the P87 Form: A Step-by-Step Guide
Filling out a tax form can feel complicated, but the p87 form is designed to be straightforward. The key is to take it one step at a time. Before you begin, we recommend gathering all your information, including your payslips, P60, and receipts or records for the expenses you plan to claim. Having everything to hand makes the process much smoother and less stressful.
Section 1: Your Personal and Employment Details
This first part is about you and your job. You’ll need to enter your personal details like your full name, address, and National Insurance (NI) number. Your NI number can be found on any payslip, your P60, or letters from HMRC. You will also need your employer’s PAYE reference number, which is also located on your payslip or P60-it usually looks like a three-digit number followed by a series of letters and numbers. Finally, add your job title and your employer’s name and address.
Section 2: Calculating and Listing Your Expenses
Here, you’ll detail the expenses you’re claiming tax relief on. The form organises this by category, such as business travel, professional fees, or specialist clothing. It’s crucial to enter the total amount you actually spent, not the amount of relief you think you’re due. If your employer reimbursed you for part of the cost, you must enter that figure in the ‘Amount paid by your employer’ box. The form will then calculate the net amount you are claiming relief on. For a complete list of allowable expenses, it’s wise to review the official P87 form guidance notes from HMRC.
Section 3: How You Want to be Paid
Finally, you need to tell HMRC how you’d like to receive your tax relief. You have two main options:
- A cheque: HMRC will send you a one-off payment for the overpaid tax. This is a simple, direct way to receive your refund for a past year’s claim.
- Through your tax code: HMRC will adjust your tax code for the current or next tax year. This means your personal allowance is increased, so you pay slightly less tax each month. This is often the best option if your expenses are ongoing, as it provides the relief automatically going forward.
Choosing a tax code change provides a steady, ongoing benefit, while a cheque gives you a single lump sum for your claim.
P87 Form vs. Self Assessment: Making the Right Choice
One of the most common points of confusion for employees claiming tax relief is deciding between using a P87 form and filing a full Self Assessment tax return. While both can be used to claim for work-related expenses, they serve very different purposes. Making the right choice is crucial for ensuring your claim is processed efficiently and you remain compliant with HMRC.
In simple terms, the P87 is a straightforward method for employees to claim tax relief on expenses of a lower value. In contrast, a Self Assessment tax return is a complete declaration of all your income for a tax year, not just your expenses. Choosing the wrong path can lead to unnecessary delays or, worse, compliance issues with HMRC. Let’s clarify when you should use each one.
The £2,500 Expenses Threshold Explained
The most important rule to remember is the £2,500 threshold. If the total value of your allowable, work-related expenses for a single tax year is £2,500 or more, you must register for Self Assessment to make your claim. HMRC will automatically reject a p87 form submitted for expenses above this limit. This isn’t a guideline; it’s a firm rule that ensures more complex claims are reviewed within a full tax return.
Other Reasons You Might Need a Self Assessment Return
The £2,500 expense limit isn’t the only reason you might need to file a Self Assessment return. You are also required to do so if you have other circumstances that need to be declared to HMRC, such as:
- You have untaxed income, for example, from renting out a property or freelance work.
- You are a director of a limited company (this applies in most cases).
- Your total annual income from all sources is over £100,000.
Navigating these rules can feel complicated, but getting it right is essential. It’s also worth being aware that the way income is reported to HMRC is changing significantly — sole traders and landlords in particular should read up on the HMRC MTD for Income Tax changes coming in 2026 to understand how these reforms may affect their tax obligations. If you’re trying to decide which route is correct for your situation, we can take the stress out of the decision. Unsure if you need Self Assessment? We can help.
Submitting Your Claim and What Happens Next
Once you have gathered all your information and correctly completed the P87 form, the final step is to submit it to HMRC. Navigating this stage can feel uncertain, but knowing what to expect can make the process much smoother and less stressful. Here’s a clear guide to submitting your claim and understanding the potential outcomes.
Claiming Online vs. Claiming by Post
You have two main options for submitting your claim, each with its own benefits. Choosing the right one depends on your preference for speed and convenience.
- Online Submission: The fastest and most efficient method is to claim online through your Government Gateway account. The digital service guides you through the process, ensuring all necessary fields are completed before you submit.
- Postal Submission: If you prefer a paper trail, you can download the p87 form from the GOV.UK website, print it, and fill it in by hand. Always use black ink and write clearly.
If you are posting your form, send it to the official address. It is always wise to use a tracked service for peace of mind.
Pay As You Earn
HM Revenue and Customs
BX9 1AS
United Kingdom
Crucially, whether you claim online or by post, always keep a complete copy of what you have submitted for your own records.
Understanding HMRC’s Response
After you’ve sent your form, HMRC will begin processing your claim. Patience is key, as response times can vary, typically taking between 6 and 12 weeks. During busy periods, this may take longer.
If your claim is successful, you will receive one of two responses:
- A P800 Tax Calculation: This letter confirms you are due a tax refund. It will detail the amount and explain how the money will be repaid to you, usually via a cheque or a direct bank transfer.
- A PAYE Coding Notice: If your expenses are ongoing, HMRC may adjust your tax code instead of issuing a one-off refund. This means you’ll pay less tax directly from your salary going forward, providing relief throughout the year.
Occasionally, HMRC may query a claim if they need more information or reject it if they believe the expenses are not allowable. If this happens, don’t worry. Review the correspondence carefully and gather your supporting documents. If you find the process complicated or need help communicating with HMRC, our team is here to assist. We can take the stress off your hands and ensure your claim is handled correctly.
Common P87 Mistakes and Expert Tips to Avoid Them
A successful claim means getting your money back from HMRC without unnecessary delays or stress. As Chartered Accountants, we see a few common pitfalls that can complicate the process. By avoiding these simple mistakes, you can ensure your claim is smooth, accurate, and approved quickly.
Here is our expert checklist to help you get it right the first time.
The Importance of Good Record-Keeping
The golden rule for any tax claim is simple: if you can’t prove it, you can’t claim it. HMRC can request evidence to support the figures on your p87 form at any time, so organised records are non-negotiable.
- Keep everything: Store all relevant receipts, invoices, and detailed mileage logs in a safe place. Digital copies are perfect for this.
- Track as you go: Use a simple spreadsheet or a dedicated app to log expenses as they happen. This saves a huge amount of time and effort later on.
- Be ready for questions: If HMRC queries your claim, having clear records makes the process straightforward and removes any potential worry.
Missing the 4-Year Time Limit
One of the most costly mistakes is simply running out of time. HMRC rules state that you can only claim tax relief for the past four tax years. This is a strict deadline, and once it passes, the opportunity to claim that money back is lost forever.
For example, you have until 5th April 2025 to make a claim for expenses incurred during the 2020/21 tax year. Don’t put it off and risk missing out.
When to Ask a Professional for Help
While the form is designed for straightforward claims, it’s easy to feel uncertain. Getting professional advice is a sensible step if you want to be sure you’re claiming everything you’re entitled to without making errors. Consider getting help if:
- Your situation is complex, covers multiple years, or involves various types of expenses.
- You are unsure which costs you can legitimately claim for.
- You simply want the peace of mind that your claim has been handled correctly and efficiently.
Let us take the stress out of your tax claim. We can ensure it’s done right, giving you one less thing to worry about.
Take the Stress Out of Your P87 Claim
Navigating your work-related expenses doesn’t have to be complicated. The key takeaway is that for claims under £2,500, the p87 form is your direct route to claiming tax relief from HMRC. By understanding what you can claim and carefully avoiding common mistakes, you can ensure you receive the full refund you are entitled to. It’s about being precise, organised, and confident in your submission.
But why add another task to your plate? If the thought of dealing with paperwork feels overwhelming, our team of Fully Qualified Chartered Accountants is here to help. With deep expertise in HMRC tax relief claims, we can manage the entire process for you, ensuring accuracy and maximising your return. As a local firm with offices in Alloa, Stirling, and Falkirk, we’re ready to take the worry off your hands.
Tax forms causing a headache? Let our expert team handle your claim for you.
Don’t leave your hard-earned money on the table. Take the first step towards getting more money back in your pocket-stress-free.
Frequently Asked Questions
How far back can I claim tax relief using a P87 form?
You can claim tax relief for the past four tax years. The deadline for claims is four years from the end of the tax year you are claiming for. For example, to claim for the 2020-21 tax year (which ended on 5 April 2021), you must submit your P87 form to HMRC by 5 April 2025. It’s always best to claim as soon as possible so you don’t miss out on any money you are owed.
Do I need to provide receipts when I submit my P87 form?
You are not required to send receipts with your P87 form, but you absolutely must keep them as proof of your expenses. HMRC can request evidence to support your claim at any time, so having organised records like receipts, invoices, and mileage logs is crucial. Keeping good records provides peace of mind and ensures you can prove your claim is accurate if HMRC opens an inquiry. It’s better to be safe than sorry.
How long does it take for HMRC to process a P87 claim and issue a refund?
HMRC processing times can vary, particularly during their busiest periods. On average, you should expect to wait around 10 to 12 weeks for your claim to be processed and for any tax refund to be issued. If your claim is more complex or if HMRC requires more information, it may take longer. You can often check the progress of your claim through your Government Gateway account or by contacting HMRC directly.
What happens if I make a mistake on my P87 form after submitting it?
Don’t worry, mistakes can be corrected. If you realise you have made an error after submitting your form, you should contact HMRC as soon as possible to inform them. You can do this by calling their income tax helpline or by writing to them with the correct details. Being proactive shows you are taking your tax affairs seriously and helps avoid any potential issues or penalties down the line. It’s a straightforward process to amend the details.
Can my accountant submit a P87 form on my behalf?
Yes, absolutely. A qualified accountant or registered tax agent can complete and submit a P87 form on your behalf. This is an excellent way to ensure all eligible expenses are claimed correctly and that the form is filled out accurately, maximising your potential refund. Having a professional handle the claim saves you time and provides the reassurance that your tax matters are being managed efficiently, taking the worry completely off your hands.
Will making a P87 claim affect my tax code in the future?
Yes, making a successful P87 claim can affect your future tax code. If your work-related expenses are likely to be similar each year, HMRC may adjust your tax code to include tax relief for these expenses. This means you will pay less tax directly from your salary each month, rather than having to claim a refund at the end of the year. It’s HMRC’s way of making the process smoother for you in subsequent years.