In order to claim tax relief for your employment expenses you need to complete the new P87 form which is now live on GOV.UK. You can find it by searching ‘New P87 form’ online.
The form does not become mandatory until the 7th of May 2022 but you can access it and use it before this date.
The new P87 form is being brought in so that there is a consistent standard of P87s going into HMRC. Standardisation also helps automating the processing of P87s. HMRC currently receive a wide variety of forms. To create a more efficient process and for automation to work, all forms need to be the same so their systems can scan them and identify the necessary information. This will help to pick up and process any repayments and coding adjustments more quickly.
The form can now also be used for multiple tax years and employments. The guidance notes are now separate from the form to make the form shorter.
The new P87 form includes a space to complete a nomination. This is the quickest way HMRC can process claims and make payments to the nominated payee. Assignments will continue to be processed but these need significant manual intervention, which means they will take longer. The quickest way to get any repayment due is to use the nomination within the form.
Any P87 applications received from the 7th of May 2022 must be made on the new form or they will be rejected.
The draft HMRC Commissioners Direction specifying the new P87 form is available by searching GOV.UK for ‘P87’ and HMRC will publish the approved HMRC Commissioners Direction when it is available on the 6th of May 2022.