{"id":27446,"date":"2024-11-18T11:37:03","date_gmt":"2024-11-18T11:37:03","guid":{"rendered":"https:\/\/smh.group\/?p=27446"},"modified":"2024-11-18T11:52:51","modified_gmt":"2024-11-18T11:52:51","slug":"hmrc-reverts-to-paper-based-claims-for-employment-expenses","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/hmrc-reverts-to-paper-based-claims-for-employment-expenses\/","title":{"rendered":"HMRC Reverts to Paper-Based Claims for Employment Expenses"},"content":{"rendered":"<p><strong>Although committed to its digital ambitions, HMRC has recently switched back to paper-based claims for employees seeking to claim employment expenses. This shift away from online submissions aims to combat fraud.<\/strong><\/p>\n<p>Reports suggest that businesses are claiming expenses even when there is little, or no, business relevance in an attempt to counteract increasingly onerous tax burdens. Given HMRC\u2019s move to paper-based claims for employment expenses, it seems as if some employees may have adopted a similar attitude. Tax refund companies have also misused the expenses system in order to obtain inflated tax repayments.<\/p>\n<h2><strong>Form P87<\/strong><\/h2>\n<p>Employees can claim tax relief for expenses through PAYE if they have not been reimbursed by their employer. From 14 October this year, claims must be made using a paper form P87 which is then posted to HMRC. Claims have to be supported by appropriate evidence. For example:<\/p>\n<ul>\n<li><strong>Professional subscriptions:<\/strong> receipt copy showing how much was paid.<\/li>\n<li><strong>Mileage allowance:<\/strong> mileage log copy, giving the reason for each journey; with start and finish points.<\/li>\n<li><strong>Subsistence:<\/strong> hotel or restaurant receipts copies.<\/li>\n<li><strong>Working from home:<\/strong> proof that an employee is required to work from home, such as a copy of the employment contract. An employee who simply chooses to work from home is not eligible for a claim.<\/li>\n<\/ul>\n<p>Despite the change, online claims can still be made for flat rate expenses (uniform, work clothing and tools). HMRC expects the digital claim route to be available again from next April.<\/p>\n<h2><strong>Self-assessment<\/strong><\/h2>\n<p>An alternative to claiming via PAYE is to claim for employment expenses when submitting a self-assessment tax return. If employment expenses for the year exceed \u00a32,500, this is the only permitted route.<\/p>\n<p>Although there is no initial requirement to provide evidence when claiming employment expenses this way, HMRC will be extending the number of compliance checks on the eligibility of expense claims made. In such cases, they may request further evidence.<\/p>\n<p>HMRC guidance on claiming tax relief for employment expenses can be found <a href=\"https:\/\/www.gov.uk\/government\/publications\/hmrc-issue-briefing-evidence-required-to-claim-paye-p87-employment-expenses\/evidence-required-to-claim-paye-p87-employment-expenses\">here<\/a>.<\/p>\n<p>For more information,\u00a0<a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/contact\/\">contact us<\/a>\u00a0on\u00a0<strong>0114 266 4432<\/strong>\u00a0or email\u00a0<a href=\"mailto:info@smh.group\"><strong>info@smh.group.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Although committed to its digital ambitions, HMRC has recently switched back to paper-based claims for employees seeking to claim employment expenses. This shift away from online submissions aims to combat fraud. Reports suggest that businesses are claiming expenses even when there is little, or no, business relevance in an attempt to counteract increasingly onerous tax burdens. Given HMRC\u2019s move to paper-based claims for employment expenses, it seems as if some employees may have adopted a similar attitude. Tax refund companies have also misused the expenses system in order to obtain inflated tax repayments. Form P87 Employees can claim tax relief for expenses through PAYE if they have not been reimbursed by their employer. From 14 October this year, claims must be made using a paper form P87 which is then posted to HMRC. Claims have to be supported by appropriate evidence. For example: Professional subscriptions: receipt copy showing how much was paid. Mileage allowance: mileage log copy, giving the reason for each journey; with start and finish points. Subsistence: hotel or restaurant receipts copies. Working from home: proof that an employee is required to work from home, such as a copy of the employment contract. An employee who simply chooses [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":27425,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[1367,11],"class_list":["post-27446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-employment-expenses","tag-hmrc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>HMRC Reverts to Paper-Based Claims for Employment Expenses - SMH Group<\/title>\n<meta name=\"description\" content=\"HMRC has recently switched back to paper-based claims for employees seeking to claim employment expenses..\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HMRC Reverts to Paper-Based Claims for Employment Expenses - 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