Claiming Tax Relief on Work Expenses: HMRC's Updated P87 Rules

Why this matters

HMRC has published updated directions setting out exactly what information employees must supply when claiming income tax relief on job expenses, and refreshed its P87 guidance notes on 23 June 2026. The message behind the paperwork is blunt: claims that arrive without the specified details or supporting evidence are rejected, not queried. If you wear a uniform, pay professional fees, buy your own tools or use your own car for work, it is worth two minutes to check your next claim will survive contact with the new checklist.

The tightening follows HMRC's 2024 crackdown on ineligible expense claims, many generated by high-volume refund agents. Genuine claimants lose nothing except the temptation to be vague; sloppy claims now bounce.

Key facts at a glance

What your claim form must now include

HMRC's directions specify the information without which a P87 will not be processed:

Evidence by type of claim

Example 1: the nurse on flat rate expenses

Fatima is an NHS nurse. Nursing staff have an agreed flat rate expense of £125 a year for uniform upkeep, and she has never claimed it. As a basic-rate taxpayer she gets 20% of £125, which is £25 a year. Backdating the full four years plus the current year, her first claim is worth around £125 in total, and her tax code then adjusts so the relief continues automatically. She needs no receipts, but her P87 must state her industry and job, her employer's PAYE reference and every required field in section 1, otherwise the whole claim comes back unprocessed.

Example 2: the engineer who bought his own tools

Dan is a maintenance engineer who spent £300 on tools this year. His employer reimbursed £100 of it. His claim is for actual costs, so the arithmetic runs:

If Dan skipped the reimbursement question or sent no receipts, the claim would be rejected. Our Work Uniform and Expense Tax Rebate Calculator works out what your own claim is worth before you start the form.

How to claim, step by step

• Check what you can claim and what it is worth with the rebate calculator.
• Gather evidence first: receipts, payslips showing your PAYE reference, reimbursement records, mileage logs. The Expense Tracker and Mileage Tracker keep these tidy through the year.
• Claim online through your Government Gateway account, or by post on a P87 if you must.
• If you already file Self Assessment, claim through your return instead; the Self Assessment Tax Calculator shows the effect on your bill.
• Backdate up to four years in the same claim if you have missed relief before.

Common mistakes to avoid

• Paying a refund agent 30% for a free process. Claiming directly with HMRC costs nothing and takes minutes for flat rate claims.
• Leaving the PAYE reference blank. It is the single most common reason forms bounce; it is on your payslip.
• Claiming the flat rate without stating your industry. The rate is industry-specific, so HMRC rejects claims that omit it.
• Hiding reimbursements. You must declare what your employer paid back; claiming relief on reimbursed costs is the exact behaviour the crackdown targets.
• Missing the four-year window. Relief for 2022/23 disappears after 5 April 2027.

Sources

• GOV.UK: Evidence required to claim PAYE (P87) employment expenses
• GOV.UK: Claim tax relief for your job expenses
• GOV.UK: Tax relief for uniforms, work clothing and tools