HMRC to reject expenses claims by letter from May 2022
Currently, there are a number of ways that employment expenses can be claimed. However, one option is being scrapped from 6 May 2022. What do employees need to know?
Employees who are in self-assessment generally claim employment expenses through their tax return. This may in turn lead to an adjustment of the PAYE code for subsequent years, but the claim still needs to be made on the return to ensure the tax deducted reconciles to the eventual liability. For those not in self-assessment, a claim can be made via their personal tax account, by phone, or by completion of a Form P87.
Currently, it's also possible to make a claim in writing, by using a letter to detail the expenses. This often happens where there are multiple years to claim for, or where a family member is helping another with their tax affairs. However, from 6 May this will no longer be possible, and HMRC will reject such claims. Instead, the P87 (which can be downloaded here) must be used. The other options, e.g. claiming via the personal tax account, will remain available.
The P87 form itself has been modified, and it will now be possible to claim for multiple years on a single form.
Related Topics
-
Do you need to pay tax on loyalty points and cashback?
You’ve been making business purchases on your personal credit card and reaping the rewards in the form of airmiles and cashback. What, if anything, do you need to do to keep on the right side of HMRC?
-
Welsh government plans to tweak relief for buyers
The draft Welsh Budget 2026/27 confirmed there would be no changes in the rates of land transaction tax. However, it did reveal some related changes are being planned. What’s the full story?
-
Can you claim input tax without a VAT invoice?
One of our clientss cannot provide a tax invoice to HMRC to support an input tax claim on the purchase of machinery three years ago. What alternative evidence should be acceptable to the officer?