If you’re an employee in the UK, you may be paying more Income Tax than necessary. HMRC allows employees to claim tax relief on certain work-related expenses, and one of the simplest ways to do this is by using the P87 form.
This updated guide explains what the P87 form is, who can use it, what expenses qualify, how to claim, and common mistakes to avoid, based on current HMRC rules.
What Is the P87 Form?
The P87 form is used to claim Income Tax relief on allowable work-related expenses when:
- You are an employee paid through PAYE
- You do not complete a Self Assessment tax return
- Your total claim is £2,500 or less for the tax year
Instead of a direct refund, HMRC usually gives relief by adjusting your tax code, so you pay less tax going forward. Refunds are normally issued only for previous tax years.
Who Can Use a P87?
You can submit a P87 if you:
- Are an employee
- Are a director paid through PAYE and not required to file Self Assessment
- Paid work-related expenses personally
- Were not reimbursed by your employer
- Have total expenses of £2,500 or less
If your expenses exceed £2,500, you must claim through Self Assessment instead.
Allowable Expenses You Can Claim
HMRC only allows expenses that are “wholly, exclusively, and necessarily” incurred for your job.
1. Uniforms, Work Clothing & Tools
You can claim for:
- Specialist uniforms
- Protective clothing (PPE)
- Tools required for your role that you must buy yourself
Everyday clothing (even if worn only at work) is not allowable.
2. Working From Home Expenses
You can claim only if your employer requires you to work from home, not if it is your personal choice.
You may claim:
- £6 per week flat rate (no receipts required), or
- Actual additional household costs (with evidence)
3. Mileage & Business Travel
You can claim for:
- Using your own vehicle for business travel
- Public transport for work-related journeys
Ordinary commuting between home and your permanent workplace is not allowed.
- 45p per mile (first 10,000 miles)
- 25p per mile there after
4. Professional Fees & Subscriptions
You can claim:
- Membership fees to HMRC-approved professional bodies
- Union subscriptions directly related to your job
5. Equipment & Essential Purchases
You may claim for:
- Equipment you are required to buy
- Items not provided by your employer
- Equipment used solely for work purposes
What You Cannot Claim
- Normal commuting costs
- Expenses reimbursed by your employer
- Rent, mortgage, or council tax
- Childcare costs
- Clothing suitable for everyday wear
How to Submit a P87 Claim
1. Online (Fastest Method)
Submit your claim via your Government Gateway account.
You’ll need:
- National Insurance number
- Employer details
- Expense breakdown
2. By Post
Complete form P87 and post it to HMRC.
3. By Phone
HMRC may accept simple claims by phone.
How Far Back Can You Claim?
You can claim tax relief for up to four previous tax years.
Example:
- In the 2024/25 tax year, you can claim back to 2020/21
How Long Does HMRC Take?
- Online claims: 2–4 weeks
- Postal claims: 6–10 weeks
Relief is usually given through:
- A tax code adjustment, or
- A refund for earlier tax years
Common P87 Mistakes to Avoid
- Claiming commuting expenses
- Claiming expenses your employer reimbursed
- Claiming optional home-working costs
- Overestimating expenses
- Failing to keep receipts or mileage logs
HMRC may request evidence at any time.
Do You Need Professional Help?
You can submit a P87 yourself, but professional advice is useful if:
- You have multiple expense categories
- You’re close to the £2,500 limit
- You want to ensure maximum legitimate relief
- You’re unsure if an expense qualifies
Frequently Asked Questions (FAQs)
1. What is the P87 form used for?
It allows employees to claim Income Tax relief on allowable work-related expenses of £2,500 or less.
2. Can directors use a P87?
Yes, only if they are paid via PAYE and do not complete Self Assessment.
3. Is the P87 a tax refund?
Usually no. HMRC typically adjusts your tax code. Refunds apply mainly to previous years.
4. Can I claim without receipts?
You don’t submit receipts initially, but HMRC may request them later.
5. Can I claim working from home if I choose to?
No. Your employer must require you to work from home.
Final Note
The P87 form is a valuable and often overlooked tax relief tool for UK employees. Used correctly, it can reduce your tax bill and recover overpaid tax fully within HMRC rules. Always check current guidance or seek professional tax advice before submitting a claim.