A guide to explains the different ways employees can claim tax relief for the employment expenses they incur as part of their jobs.

This is a freeview 'At a glance' guide to employees claiming tax relief for employment expenses. 

At a glance

There are several different ways in which Income Tax relief can be claimed by an employee on job-related expenses.

To obtain tax relief, the expense must have been:

All claims must be made to HM Revenue & Customs.

You will need your employer's name and 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:

Postal claims

Postal claims must be made by completing Form P87 which can be used to claim:

Additional information can be submitted with the form if necessary.

From 21 December 2022, claims made on form P87 must include: 

Forms received by HMRC which do not include these details will be rejected. 

Following a clampdown on over-charging by unscrupulous tax agents, a new claim form was made available on 12 February 2024:

Unable to contact HMRC by post or online?

In December 2023 HMRC announced that you can contact HMRC by phone if you’ve already claimed the same expense type in a previous year and your total expenses are £2,500 or less. You cannot claim working-from-home expenses by phone.

Future simplification

In January 2024, HMRC announced that a new online service for employees to claim tax relief on all of their expenses in one place is being developed. 

See HMRC’s simplification update: January 2024

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:

Useful guides on this topic

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

Authorised mileage rates (own vehicle)
How much can you claim for the costs of business travel? How much can be reimbursed by an employer towards the costs of qualifying business travel?

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

HMRC: Claim tax relief on employment expenses

Form P87

Form P87 Guidance notes


Small acorn
If you like our content come and join us.

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter