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 Topics
-
New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
-
Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
-
New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?