P87

Form p87 is an online, or postal, HMRC produced form under the general heading 'tax-relief-for-employees' and enables employed individuals to claim tax relief on certain expenses incurred in the course of their work.

The principal eligible expenses are:

• Working from home
• Purchase of uniform, work clothing and tools
• Vehicles used for work (not commuting)
• Professional Fees and Subscriptions
• Travel and Overnight expenses
• Capital Allowances on equipment purchases

In the case of vehicle claims, this can be for either personally owned vehicles, or company owned vehicles where the employee pays for fuel and/or electricity concerning any business trips undertaken.

The personally owned vehicle claim is calculated by using the HMRC approved mileage rates and, for company vehicles, the amount actually incurred. In either case, any reimbursement by the employer has to be deducted and the claim made on the difference.

For those required to file a self-assessment tax return, form p87 is not used and the applicable entries are made on the employment pages of the tax return.