P87 Form HMRC

Navigating the maze of tax forms can be daunting, but understanding them is crucial for maximizing your financial benefits. One such important document for employees in the UK is the P87 form. This guide will walk you through everything you need to know about the P87 form HMRC, from what it is to how to fill it out and submit it.

What is the P87 Form?

Definition and Purpose

The P87 form is a document used by employees in the UK to claim tax relief on work-related expenses. These are costs that you have incurred in the course of your employment but have not been reimbursed by your employer. The aim is to ensure you’re not out of pocket for necessary job-related expenses.

Who Should Use It?

This form is specifically designed for employees rather than the self-employed. If you’ve spent your own money on things like travel for work, professional fees, or uniforms, and your employer hasn’t paid you back, the P87 form is for you.

Eligibility Criteria

Employees vs. Self-Employed

The P87 form is exclusively for employees. Self-employed individuals must use different forms and methods to claim expenses.

Types of Expenses Covered

The form covers various types of expenses, including travel, professional fees, and costs related to uniforms and equipment. It’s essential to understand what qualifies as an eligible expense to ensure your claim is accepted.

When to Use the P87 Form

Common Scenarios

You should use the P87 form if you have incurred out-of-pocket expenses that are necessary for your job. Common scenarios include travelling to temporary workplaces, paying professional fees, or buying and maintaining a uniform required for your job.

Deadlines and Timing

It’s crucial to submit the P87 form within four years of the end of the tax year in which you incurred the expense. Missing this deadline could mean missing out on potential tax relief.

How to Obtain the P87 Form

Online Methods

The quickest and most convenient way to obtain the P87 form is to download it directly from the HMRC website. Here’s how you can do it:

Visit the HMRC Website: Go to the official HMRC website.
Search for the P87 Form: Use the search function on the website and type “P87 form.”
Download the Form: Locate the P87 form from the search results and download the PDF version to your computer.
Fill Out the Form: You can fill out the form digitally if you prefer, or print it out and complete it by hand.

Requesting by Phone or Mail

If you prefer to receive a paper copy of the P87 form, you can request one from HMRC either by phone or by mail.

1. Request by Phone:

Call the HMRC helpline at their official number (you can find the most current number on the HMRC website under the contact section).
Request a P87 form and provide your mailing address.

2. Request by Mail:

Write a letter to HMRC requesting a P87 form. Include your name, National Insurance number, and your postal address.
Send the letter to the HMRC address listed on their website under the contact information.

Returning the Form

Once you have filled out the form, you can return it to HMRC either by submitting it online (if you filled it out digitally) or by mailing the completed paper form to the address provided by HMRC.

Filling Out the P87 Form

Section-by-Section Breakdown

Filling out the P87 form can be straightforward if you approach it section by section. Here’s a quick guide:

Personal Details: Include your name, address, and National Insurance number.
Employer Details: Provide information about your employer, including their name and address.
Expense Details: List each expense, including dates and amounts.
Total Expenses: Calculate and enter the total amount of expenses you are claiming.
Declaration: Sign and date the form to confirm the accuracy of your information.

Common Mistakes to Avoid

Common mistakes include incorrect National Insurance numbers, missing employer details, and inaccurately reported expenses. Double-check each section to ensure accuracy.

Submitting the P87 Form

Online Submission: You can submit the P87 form online through your personal tax account on the HMRC website. This method is faster and often results in quicker processing times.
Postal Submission: Alternatively, you can mail the completed form to HMRC. Be sure to send it to the correct address and consider using recorded delivery to confirm receipt.

What Happens After Submission?

HMRC Processing Time

Once submitted, HMRC will review your form. This process can take a few weeks, depending on their workload.

Receiving Your Tax Relief

If your claim is approved, you will receive tax relief either as a refund or through an adjustment to your tax code. This means you might pay less tax in the future or get a lump sum refund.

Commonly Claimed Expenses

Travel Expenses: Many employees claim travel expenses, especially those who travel between different work sites or to temporary workplaces.
Professional Fees: Membership fees for professional bodies or subscriptions to professional journals are also common claims.
Uniform and Equipment Costs: If you have to buy, maintain, or replace a uniform or job-specific equipment, these costs can be claimed as well.

Claiming Travel Expenses

Mileage and Fuel: If you use your personal vehicle for work-related travel, you can claim mileage at HMRC’s approved rates. Keep a log of your trips to support your claim.
Public Transport Costs: Costs incurred for trains, buses, and other public transport can also be claimed. Keep all tickets and receipts as proof of travel.

Professional Fees and Subscriptions

Eligible Subscriptions: Subscriptions to professional bodies and journals that are necessary for your work are eligible. Ensure that the subscription is directly related to your job role.
Necessary Documentation: Keep receipts and proof of payment for all professional fees and subscriptions. HMRC may request these during their review process.

Uniform and Equipment Costs

Maintaining and Replacing Uniforms: You can claim for the cost of washing, repairing, or replacing your uniform. This includes protective clothing required for your job.
Work-Related Equipment: If you need specific equipment to perform your job, such as tools or safety gear, these costs can be claimed as well.

Tips for a Successful Claim

Keeping Accurate Records: Maintain detailed records of all expenses, including dates, amounts, and the reason for each expense. This will make filling out the P87 form much easier.
Double-Checking Details: Before submitting your form, double-check all information to ensure accuracy. Mistakes can delay processing or result in a denied claim.

Potential Pitfalls and How to Avoid Them

Misreporting Expenses: Ensure that all claimed expenses are work-related and eligible. Misreporting can lead to penalties and fines.
Missing Deadlines: Keep track of deadlines and submit your form promptly to avoid missing out on tax relief.

Conclusion

Understanding and properly utilizing the P87 form can lead to significant tax savings for UK employees. By keeping accurate records, knowing what expenses qualify, and following the correct submission procedures, you can ensure a smooth and successful claim process. Stay informed and proactive to maximize your financial benefits.

Download P87 Form HMRC

FAQs About the P87 Form

Can I claim for expenses from previous years?
Yes, you can claim for expenses incurred in the past four tax years.
2. What happens if my claim is denied?
If your claim is denied, HMRC will provide a reason. You can correct any issues and resubmit your form.
Can I claim for working from home expenses?
Yes, you can claim for additional household costs if you work from home.
Do I need to provide receipts?
While you don’t need to submit receipts with your form, you should keep them in case HMRC requests proof.
How will I receive my tax relief?
Tax relief is typically provided through an adjustment to your tax code or a refund.