From 14 October 2024, HMRC is introducing new evidence requirements for claimants of PAYE employment expenses. This is explained as being a response to a growing number of ineligible claims.
From 14 October 2024, HMRC will require customers who want to claim PAYE employment expenses to use a P87 form and provide supporting evidence to prove their eligibility before HMRC will progress the claim. HMRC will check all evidence and confirm to customers whether they are entitled to tax relief.
Claiming with the existing digital form or via telephone will no longer be possible, with all claims instead being by post, using a printed P87 form. HMRC states that they are working to reinstate the digital process and expect this to be available again by April 2025. Priority is being given to uniform, work clothing and tools expenses, for which online claims should be available again from 31 October 2024.
For now, evidence should be sent by post to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
The DSG tax team is experienced in dealing with employment expenses claims for our clients – please get in touch if you would like our assistance.
Evidence requirements
HMRC provides a few examples of the types of evidence claimants will be expected to provide:
- Subscriptions to professional bodies: copies of receipts, or other evidence, that shows how much was paid for each professional subscription claimed.
- Mileage allowance: a copy of a mileage log for each employment. This should include the reason for every journey and the postcodes for the start and finishing points.
- Hotel and meal expenses (subsistence): copies of receipts that include the date of a stay or a meal, and the name of the hotel or restaurant.
- Expenses for working from home: evidence that the claimant must work from home, such as a copy of their employment contract. If it’s the claimant’s choice to work from home, they can’t claim this expense.
- Other expenses: a full list of the other expenses claimed and the employments they’re for, with receipts or other evidence for each item.
- Uniform, work clothing and tool expenses (also known as Flat Rate Expenses): evidence will not be required for these Flat Rate Expenses (FRE) claims, but HMRC will undertake checks following a risk-based approach.