The P87 form is an essential document used to claim tax relief on work-related expenses. Whether you are an employee or a self-employed individual in UK, understanding the purpose and usage of the P87 form can help you take advantage of potential tax savings. In this article, we will explore more details on P87 form and address some common questions to provide clarity on its significance.
Table of Contents
What is the P87 form?
P87 form is used to claim tax relief on work-related costs. It is primarily aimed at employees who incur expenditures directly relevant to their employment but are not repaid by their employer.
Who uses the P87 form?
The P87 form is used by individuals who are employed and wish to claim tax relief on allowable work-related expenses. It is also applicable to self-employed individuals who incur expenses related to their self-employment.
What types of expenses can be claimed using the P87 form?
The P87 form allows you to claim tax relief on various work-related expenses, such as business mileage, professional subscriptions, uniform and equipment costs, professional fees, and other allowable expenses directly related to your employment or self-employment.
Also read: SA100 Form – Self Assessment Tax Return
Can anyone claim tax relief using the P87 form?
Yes, anyone can claim tax relief using the P87 form. But there are certain requirements that need to be followed before you send the P87 form to HMRC. All the expenses which you did must be for your employment or sole trader business purposes only.
How can I obtain a P87 form?
Download the P87 form from the HM Revenue and Customs (HMRC) website or you can request a copy of the P87 by contacting HMRC’s helpline number.
How should I complete the P87 form?
You may fill out the P87 form online and enter your personal details, job details, the tax year for which you are claiming the tax relief, and the charges you are claiming. Once you complete the form make sure you correctly enter the details in the form and attach all the supporting documents like receipts and any other certificate or any other document which you think is required.
Also read: SA401 form
Can I submit multiple P87 forms for different tax years?
Yes, you can submit multiple P87 forms for different tax years if you have eligible expenses to claim for those years. Each form should be completed separately for the corresponding tax year.
Is there a deadline for submitting the P87 form?
The P87 form has no set date for submission. It is, nevertheless, best to make your claim as soon as possible following the end of the tax year in which the expenditures were spent. It’s worth noting that you can’t claim tax breaks for costs spent more than four years ago.
What happens after submitting the P87 form?
Can I appeal if my P87 form claim is rejected?
Yes, if your P87 form claim is rejected or not fully approved, you have the right to appeal the decision. You can contact HMRC’s helpline or seek guidance from a tax advisor to understand the reasons for the rejection and the steps you can take to appeal the decision.
Conclusion of P87 Form:
The P87 form provides a valuable opportunity for employees and self-employed individuals in the UK to claim tax relief on allowable work-related expenses. By understanding the purpose and usage of the P87 form, individuals can take advantage of potential tax savings and ensure they are appropriately reimbursed for eligible expenses. Remember to accurately complete the form, provide supporting evidence where required, and submit it in a timely manner.
Utilizing the P87 form can help alleviate the financial burden of work-related expenses and ensure you receive the tax relief you are entitled to. If you have any questions or uncertainties, it is advisable to seek guidance from HM Revenue and Customs (HMRC) or consult with a tax advisor to ensure compliance and maximize your tax benefits.
DISCLAIMER: We have written the UK accounting and tax related details for your information only. For professional advice or for any accounting task you require, you may need to speak to a professional accountant near you who can assist you. Please read our disclaimer for more details.