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Tax relief for employees

As the end of the tax year is nearly upon us, we decided to highlight an issue many PAYE employees are unaware of – namely, that they can claim back certain expenses. The technical term for this is a ‘tax-deductible expense’ which means that either you have paid the expense yourself without any reimbursement or your employer reimbursed the expense but you were taxed on the reimbursed amount.

For our carers, these sort of tax-deductible expenses include things like the cost of laundering or repairing work uniforms and the cost of purchasing fuel for a company or private car (that has not been reimbursed by an employeer).

For employees claiming tax relief for the first time, form P87 will need to be filled in using this link on the HMRC website.

Before filling in the form, have the following information to hand:

  • Employer’s name and address
  • Your occupation, job title and industry sector
  • Your details, including your National Insurance number and your PAYE reference
  • Whether you’re claiming flat rate expenses (usually you will be; if not, you’ll need detailed records of costs)
  • How you want to be paid (i.e. into your bank account or by cheque)

The form asks about other expenses you may be claiming such as a company car or fuel. If you aren’t claiming for any of these, just click ‘No’ on each page of the form that doesn’t apply. Once the form has been filled in online, it can either be submitted online or printed out and sent to HMRC at the following address:

Pay As You Earn
HM Revenue and Customs

Write ‘Repayment Claim’ on the envelope to help speed things up.

One form for each year of claims will need to be filled in. We also suggest you avoid websites or claim handlers who offer to fill in the form for you as they will generally charge a fee.

Once your claim has been received and processed by HMRC, you’ll be sent a letter telling you how much you’re entitled to, and details on when the money will be paid. There is normally a wait of around five weeks to hear back from them.

More information can be found at:
Claim Income Tax relief for your employment expenses
Tax relief for employees


CQC Report 2016 Brighton And Hove Adult Services Living Wage UK Home Care Association