Claiming Tax Relief on Work Expenses: HMRC's Updated P87 Rules
Quick answer
HMRC has updated its P87 guidance and formal directions on what a job expenses claim must contain. Miss the employer PAYE reference, industry type or evidence and the claim is rejected outright. Here is what to include and what your claim is worth.
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
| Detail | Position from 2026 |
|---|---|
| Form for PAYE employees | P87 (online or post), or Self Assessment if you already file |
| Guidance last updated | 23 June 2026 |
| Evidence rule | Copies of receipts or other proof must accompany most claims |
| Incomplete forms | Rejected if required fields are missing |
| Backdating | Up to 4 previous tax years (2022/23 claims close 5 April 2027) |
| Cost to claim yourself | Free, directly with HMRC |
What your claim form must now include
HMRC's directions specify the information without which a P87 will not be processed:
| Requirement | Detail |
|---|---|
| Personal and employment details | All of section 1 of the form, except your title and phone number, which are optional |
| Employer PAYE reference | Mandatory in section 2. It is on your payslip or P60, formatted like 123/AB456 |
| Industry type | Mandatory where you claim flat rate expenses, because the flat rate depends on your job |
| Reimbursement disclosure | Whether your employer paid any of the cost back, with evidence of how much |
| Supporting evidence | Receipts or proof showing what you bought and that you paid for it |
Evidence by type of claim
| Claim type | What HMRC wants to see |
|---|---|
| Flat rate expenses (uniform, tools) | No receipts needed, but your industry and job must be stated so the right flat rate applies |
| Actual cost of tools or equipment | Receipts naming the item, plus proof you paid and were not fully reimbursed |
| Professional fees and subscriptions | Proof of payment to a body on HMRC's approved list |
| Working from home | Evidence your employer requires you to work from home; the £6 per week flat rate needs no bills |
| Business mileage in your own car | A mileage log with dates, journeys and business purpose |
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:
| Line | Amount |
|---|---|
| Tools purchased (receipts attached) | £300 |
| Employer reimbursement (declared, with evidence) | £100 |
| Amount qualifying for relief | £200 |
| Tax back at basic rate (20%) | £40 |
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
Written by
Laura Michelle Davis — Chartered Tax Adviser (CTA)
ACCA · CTA (Chartered Tax Adviser) · ATT · BSc Economics, UC Berkeley
Laura Michelle Davis is a Chartered Tax Adviser (CTA) who also holds the ACCA and ATT qualifications and a BSc in Economics from UC Berkeley. She specialises in UK personal tax, covering income tax, National Insurance, self-employment and capital gains, and has built her career making complicated rules easy to follow. At TaxFly, Laura writes and edits the tax guides and explainers, checking that figures reflect current HMRC rates and that every explanation answers the question a real person is actually asking. Her goal is plain-English clarity you can trust and act on.
