The form used to claim employment-related expenses has been overhauled by HM Revenue & Customs (HMRC), which it says is designed to deter spurious claims managed by high-volume agents (HVAs).
HVAs are used by taxpayers to claim tax reliefs, such as employment-related expenses. They deal with large numbers of clients and make requests for repayments, or submit returns that generate repayments, on the customer’s behalf.
Now the form used to claim employment-related expenses, Form P87, will have more compulsory boxes to be filled in from 21 December.
This follows regulations being passed on 29 November requiring the following sections of form P87 to be completed:
Where flat-rate allowances are claimed under ITEPA 2003 s 367, which are specific to defined industry sectors, a description of the industry must be included.
Taxpayers will still be able to send the new form to the tax agent but any deed or letter of assignment to divert part, or all, of the tax repayment to the HVA, must be submitted with the paper form P87.
HMRC says that these paper forms will be subject to much more security to check that all aspects of the deed are compliant.
Missing details
The move comes after the tax authority realised the P87 is not being completed in full by many taxpayers, missing information, such as the PAYE reference HMRC.
This means that HMRC’s staff have to search for the missing details before the form can be processed.
Where flat-rate allowances are claimed under ITEPA 2003 s 367, which are specific to defined industry sectors, a description of the industry must be included.
From 21 December 2022, any P87 forms that don’t include the required information will be rejected.
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