Tax relief for employment expenses - HMRC process change

From 14 October 2024, employees wanting to claim tax relief for job-related expenses which are not fully reimbursed by their employer will need to submit their claims by post and supply evidence of the expenses incurred. Online and telephone claims will not be possible until further notice. 

A ‘P87’ expense claim form will need to be completed and posted to HMRC, along with evidence of the expenses incurred.  The evidence needed will depend on the type of expenses - HMRC's announcement of the policy change contains examples of the type of evidence needed for some common claims. 

No evidence will need to be submitted in respect of claims for Flat Rate Expenses. These are fixed amounts of tax relief for certain jobs to cover the costs of uniforms, work clothes and tools.

The process for claiming tax relief via a Self-Assessment return remains unchanged– employees who filed Self Assessment tax returns will not need to provide evidence when filing their return, but will need to retain adequate records of the expenses incurred. Tax relief for employment related expenses has to be claimed via Self-Assessment where the total claim exceeds £2,500 in a tax year. 

HMRC aim to offer a digital route to claim Flat Rate Expenses from 31 October 2024, with plans to reinstate the digital claims route for general employment related expenses from April 2025.