What is a P87 form and how do you claim?

In short

• The P87 is HMRC's form for claiming tax relief on employment expenses.
• Use it if your expenses are £2,500 a year or less. Above that you need Self Assessment.
• One form per tax year, per employer.
• We file the equivalent for you as your agent, so you never see the form.

We can file for you: see how it works and our fee, or claim free from HMRC yourself.

What the form covers

• Mileage in your own vehicle
• Uniform and tool flat rates
• Professional fees and subscriptions
• Working from home
• Other costs you had to pay to do the job

Who cannot use it

If your expenses in a year are more than £2,500, or you already file a tax return, the claim goes on the return instead. Heavy-mileage drivers often cross this line. How to register for Self Assessment.

Filling it in yourself

1. Sign in to your personal tax account with your Government Gateway ID. How to create one.
2. Choose the tax year. You can go back 4 years.
3. Enter each expense type with the amount, less anything your employer paid.
4. Since 2024 HMRC asks for supporting evidence with the claim: mileage logs, receipts or statements.
5. Submit and note the reference.

Worked example

A mechanic spends £1,400 on tools. He claims that actual cost rather than the £120 motor mechanics' flat rate, which covers the same tools and clothing: £1,400 of relief, under the £2,500 line, so a P87 is right. Tax back at 20%: £280 for the year.

Or let us do it

We prepare the claim from your HMRC record, you approve it, we file it as your agent. Fee 37.5% plus VAT of the refund, nothing if there is no refund.

Questions

Do I need receipts?

Flat rates need none. Actual costs need receipts or statements. Mileage needs a record of each work journey: date, start and end postcode, and reason.

Can I claim for more than one job on one form?

No, one form per employer per year, which is one reason people give up.

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