The way in which employees can claim expenses changed on 7 May 2022. This freeview guide explains the way in which employees can claim expenses.

There are a number of different ways in which Income Tax relief can be claimed by an employee on expenses that they incur.

To obtain tax relief, the expense must have been:

  • Incurred personally and not reimbursed by your employer.
  • Incurred 'wholly, exclusively and necessarily' in the performance of your employment.
  • You must be a taxpayer in order to claim relief.

All claims must be made to HM Revenue & Customs.

You will need your employer's name and its PAYE reference in order to make the claim. Ask the HR department for these details. They also appear on your end of year PAYE summary form P60.

Online claims

A claim can be made online if you meet certain criteria, as follows:

Phone claims

A claim can generally be made by phone if expenses were claimed in a prior year and they total less than either:

  • £1,000.
  • £2,500 for professional fees and subscriptions.

Postal claims

Postal claims must be made by completing Form P87 from 7 May 2022. After this date letters claiming expenses will not be accepted. Form P87 can be used to claim:

  • On someone else’s behalf.
  • For multiple tax years.
  • For multiple jobs.

Additional information can be submitted with the form if necessary.

Self Assessment

If you complete a Self Assessment tax return you need to make the claim in the Employment income section.

 Information that you will need when filing an expense claim includes:

  • The receipts for the expenses that you are claiming.
  • Details of any business mileage undertaken, which could include journey details, miles travelled and Authorised mileage payments received.
  • Receipts for any Hotel and Meal expenses incurred.

Useful guides on this topic

Employee expenses
A series of guides that look at the rules covering employee expenses

Authorised mileage rates (own vehicle)
This is a freeview 'At a glance' guide to Employee business travel and Authorised mileage rates (AMAP).

Subsistence (employees)
Can employees claim tax relief for subsistence? How do you make a claim?

Accommodation: With travel or temporary workplaces
What cash allowances can be provided for business travel? What qualifies as business travel? What tax relief is available for accommodation?

Broadband
Can home-workers benefit from employer-provided broadband? What tax relief is available? How is it calculated?

Exemption for paid and reimbursed expenses
What exemptions apply for paid and reimbursed employee expenses? What are the rules?

Fees and subscriptions: List 3 (professional bodies)
What tax relief on professional membership fees and annual subscriptions? What's the legislation?

External Links

Form P87

Form P87 Guidance notes


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