HMRC has recently implemented stricter verification procedures for employees claiming tax relief on unreimbursed employee expenses. If you’re among the many who claim for professional subscriptions, business mileage, or travel costs, you’ll need to be prepared for these important changes.
New Evidence Requirements
As part of a broader effort to reduce ineligible expense claims, HMRC now requires supporting evidence when submitting your claim. The tax authority will verify your eligibility before processing your claim, adding an extra layer of scrutiny to the process.
Digital Forms
From December 23, 2024, a new online iForm has been introduced for both claiming expenses and uploading supporting documentation. This digital solution replaces the previous system, which required downloading and mailing form P87. While postal submissions are still accepted, the online method is designed to streamline the process.
Flat Rate Expenses
Claims for Flat Rate Expenses covering uniforms, work clothing, and tools can still be made online. While these claims don’t require supporting evidence, they’ll also face increased examination under the new procedures.
Higher Value Claims
For those claiming expenses exceeding £2,500, the process continues through self-assessment. However, HMRC has launched compliance initiatives specifically targeting these higher-value claims. The tax authority may request additional evidence to support your submission.
Best Practices
Regardless of your claim amount or method, careful record-keeping is now more important than ever. Make sure to retain all supporting documentation for your work-related expenses to avoid potential complications with your claim.
For more information please don’t hesitate to contact us on 01905 777600 or email hello@ormerodrutter.co.uk
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