Back To The Future - Back To Paper With HMRC

HMRC is changing the way employees can claim PAYE employment expenses, by going back to paper submissions through the post to reduce fraud 

From 14 October 2024, HMRC will require employees to claim PAYE employment expenses using a P87 form and provide supporting evidence to prove their eligibility before the claim is progressed.

Employees can claim this tax relief through PAYE if the amount claimed is up to £2,500. 

In a bid to crack down on fraudulent claims, HMRC is tightening the rules, requiring claims to be made by post on paper forms with supporting evidence.

Under the new process, HMRC will require employees who want to claim PAYE employment expenses to use a P87 form and provide supporting evidence to prove their eligibility for a claim. 

HMRC is currently writing to claimants (including agents and accountancy firms), whose claims have not been processed since 10 June when the system was halted, to inform them of this new requirement and to ask them to provide evidence to support their claim.

From 12 October, claimants will no longer be able to submit a PAYE employment expense claim using the digital form or make a new claim over the phone.

This approach quite clearly runs counter to HMRC’s digital ambitions. Given the theoretical risk of fraud from online claims, it makes you wonder what other security flaws are in other parts of HMRC's digital systems!

ax does have to be taxing.

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