What is form P87?

Form P87 ("Tax relief for expenses of employment") is an HMRC form employees use to claim tax relief on work-related expenses they paid for themselves. If your employer does not reimburse certain costs, you can claim tax relief to reduce your Income Tax bill.

You do not get a cash refund equal to the expense. The expense reduces your taxable income, so you save tax at your marginal rate (20%, 40%, or 45%).

Example: You claim £300 in mileage expenses. You're a basic-rate taxpayer. Your tax refund is £60 (20% of £300).

Who can use form P87?

You can use P87 if:

  • You are an employee paid through PAYE
  • You have work expenses you paid yourself
  • Your employer has not reimbursed you
  • The expenses were incurred wholly, exclusively, and necessarily for your job

You cannot use P87 if:

  • You are self-employed (claim expenses via Self Assessment instead)
  • You already complete a Self Assessment tax return (include expenses there instead)
  • Your employer reimbursed you for the expenses

What expenses can you claim on P87?

You can claim the following expenses:

1. Uniforms and work clothing

Claim the flat-rate expense allowance for washing, repairing, and replacing your uniform. The standard allowance is £60 per year. Some occupations have higher rates (nurses £125, engineers £140).

2. Tools and specialist equipment

Claim for tools you need for your job (spanners, screwdrivers, power tools, laptop if required). Claim the cost of buying tools or the flat-rate allowance if your occupation has one.

3. Mileage (business travel)

Claim HMRC's approved mileage rates for business journeys in your own vehicle:

  • Cars and vans: 45p per mile (first 10,000 miles), 25p per mile (over 10,000 miles)
  • Motorcycles: 24p per mile
  • Bicycles: 20p per mile

Business travel means journeys between work sites, client visits, or temporary workplaces. You cannot claim for your commute from home to your permanent workplace.

4. Working from home allowance

If your employer requires you to work from home, you can claim £6 per week (£312 per year) to cover heating, lighting, and broadband costs. You do not need receipts.

You cannot claim if you choose to work from home when your employer provides an office.

5. Professional fees and subscriptions

Claim for professional body membership fees or subscriptions if they are necessary for your job. HMRC maintains a list of approved professional organisations. Examples:

  • Institute of Chartered Accountants (ICAEW)
  • General Medical Council (GMC)
  • Law Society
  • Royal Institution of Chartered Surveyors (RICS)

You cannot claim for subscriptions to trade unions (these already receive tax relief) or gym memberships.

6. Other allowable expenses

You can claim for:

  • Phone and broadband costs (business use portion only)
  • Hotel and meal costs for overnight business trips (not reimbursed by employer)
  • Parking fees and tolls for business journeys
  • Eye tests and glasses (if you use Display Screen Equipment for work)

What you cannot claim

You cannot claim tax relief for:

  • Commuting costs (travel between home and permanent workplace)
  • Lunches and meals at your normal workplace
  • Expenses your employer reimbursed
  • Expenses that are not wholly, exclusively, and necessarily for your job
  • Personal expenses (clothes, gym, personal phone use)

How to fill in P87 form online

The fastest way to claim is online via your HMRC Personal Tax Account:

  1. Go to gov.uk/tax-relief-for-employees
  2. Sign in with your Government Gateway user ID (create one if you don't have it)
  3. Select "Claim tax relief for your job expenses"
  4. Choose the type of expense (uniform, mileage, working from home, etc.)
  5. Enter the amount you are claiming and the tax years
  6. Submit the claim

HMRC processes online claims within 5-10 working days. You'll see the refund in your bank account or as a tax code adjustment.

How to fill in P87 form on paper

Download form P87 from gov.uk. You'll need:

  • Your National Insurance number
  • Your employer's name, address, and PAYE reference
  • The tax years you are claiming for
  • Details of the expenses (type, amount, date incurred)

Fill in the form and post it to:

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS

Paper claims take 4-8 weeks to process.

How to fill in each section of P87

Section 1: Your details

Enter your name, address, National Insurance number, and contact phone number.

Section 2: Your employment details

Enter your employer's name, address, and PAYE reference. You can find the PAYE reference on your payslip or P60.

Section 3: Tax years you are claiming for

Tick the tax years you want to claim. You can backdate claims for up to 4 previous tax years.

Section 4: Expenses you are claiming

List each type of expense and the total amount for each tax year. Use separate lines for:

  • Uniforms and tools (flat-rate allowance or actual cost)
  • Mileage (number of business miles × approved rate)
  • Working from home (£6 per week × weeks worked from home)
  • Professional fees (annual subscription cost)

Section 5: Declaration

Sign and date the form to confirm the information is correct.

Do you need receipts for P87?

You do not need to send receipts with your P87 form. However, you must keep receipts for:

  • At least 22 months after the end of the tax year you are claiming for
  • HMRC may ask to see them if they query your claim

Flat-rate expense allowances (uniforms, working from home) do not require receipts. Actual expenses (tools, mileage over reimbursed amount) need evidence.

How much will you get back?

You get tax relief at your marginal rate:

Expense claimed Basic rate (20%) Higher rate (40%) Additional rate (45%)
£60 (uniform) £12 £24 £27
£312 (working from home, full year) £62 £125 £140
£500 (mileage) £100 £200 £225
£200 (professional fees) £40 £80 £90

How long does P87 take to process?

HMRC aims to process P87 claims within:

  • Online claims: 5-10 working days
  • Paper claims: 4-8 weeks

If your claim is complex or HMRC needs more information, processing may take longer.

How will you receive the refund?

HMRC refunds you in one of two ways:

1. Direct payment

If you claim for past tax years only, HMRC issues a one-off payment by bank transfer (if they have your bank details) or by cheque.

2. Tax code adjustment

If you claim for the current or future tax years, HMRC adjusts your tax code so you pay less tax each month. Your employer deducts less tax from your salary, increasing your take-home pay.

Example: You claim £312 working from home allowance. HMRC increases your tax-free allowance by £312. Your monthly tax bill reduces by £5.20 (£312 ÷ 12 × 20%).

Can you claim P87 every year?

Yes. If you have ongoing expenses (uniform, working from home, professional fees), claim P87 for each tax year. Once HMRC adjusts your tax code, the relief continues until you tell them to stop.

If your circumstances change (you stop working from home, your employer starts reimbursing expenses), tell HMRC immediately so they can adjust your tax code. Continuing to claim relief you are not entitled to creates a tax underpayment.

P87 vs Self Assessment

If you complete a Self Assessment tax return, you cannot use P87. Include your employment expenses in the Self Assessment return instead:

  • Log in to your Self Assessment account
  • Go to the "Employment" section
  • Enter expenses under "Employment expenses"

Self Assessment processes expenses when you file your return. You receive relief either as a refund or a reduction in the tax due.

What if HMRC rejects your P87 claim?

HMRC may reject your claim if:

  • The expense is not wholly, exclusively, and necessarily for your job
  • Your employer reimbursed the expense
  • You do not have evidence to support the claim

If your claim is rejected, HMRC sends a letter explaining why. You can:

  • Provide more evidence and resubmit
  • Request a review if you disagree with HMRC's decision
  • Appeal to the tax tribunal if the review upholds the rejection