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 News
-
Planning ahead for pension salary sacrifice changes
From 6 April 2029, both employers and employees will be required to pay Class 1 NI on pension contributions in excess of £2,000 made through a salary sacrifice arrangement. What can you do about it?
-
Marginal relief - responding to an HMRC nudge letter
HMRC is running a campaign to clamp down on incorrect claims for corporation tax marginal relief (MR). In what circumstances might you be challenged by HMRC and how should you respond?
-
Can you claim input tax on costs linked to electric cars?
Your business intends to go green and buy new electric cars. Can you claim input tax on the purchase of the vehicles and their subsequent fuel costs? Additionally, what recent change has been announced by HMRC?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.