From Saturday 7 May, the new form P87 (relief for employment expenses) which we told you about in March becomes mandatory. No other versions will be accepted by HMRC. Readers are also reminded that from some time to be decided in Autumn 2022, HMRC’s new form 64-8 for authorising an agent will also become mandatory. HMRC has asked us to share the below message about form P87.
“We wrote to you as a repayment agent, on 24 March, about our plan to mandate the use of a new P87 form from 7 May 2022.
We’ve received a number of queries from agents about the new form and process. We’re writing to share some further information with you, so you can be prepared for the changes.
Why we’re mandating a new P87 form
We currently receive a wide variety of employment expense claim forms from repayment agents. We’re asking all agents to use the new P87 form and making this mandatory from 7 May 2022.
The new version of the form is designed to give a better customer experience by helping us process applications more quickly and efficiently for you and your clients.
What will happen from 7 May 2022
You’ll need to use the new P87 form for any applications received by us from this date. On or after this date, we’ll only accept the new version of the form and reject any applications sent using other versions of the form.
If this happens, we’ll write to you once to tell you the application(s) won’t be processed and signpost you to the correct P87 form. We won’t send any further letter prompts after this and any further applications received won’t be processed either.
We will, however, process any applications we receive on or before 6 May 2022, whatever format they are in.
Useful information about filling in the new form
You should complete all relevant boxes on the P87 form and make sure it’s signed by the customer making the claim. If we have to contact you or find missing information internally, this could delay the claim outcome.
We’ll monitor the standard of applications and work with any repayment agents who submit high levels of incomplete applications, to understand any difficulties in providing the complete information.
Finding the correct employer PAYE reference
The new form suggests ways in which the customer can provide the repayment agent with the correct employer PAYE reference number (i.e. P45, P60 or the customer’s Personal Tax Account).
The Personal Tax Account doesn’t currently provide the customer with details of their employer PAYE reference number. We’re working to make sure this information is available to customers on their Personal Tax Account.
The Personal Tax Account does, however, include information about the employer and also provides access to a digital service for the customer to make a P87 application online.
Frequently asked questions for agents
What has changed for P87 applications?
New secondary legislation will come into force on 6 May enabling HMRC to determine the format of these applications and HMRC will be directing that users adopt the P87 form from 7 May 2022. This means that information must be provided using the prescribed P87 form from 7 May 2022.
Why have you introduced this change?
We currently receive a wide variety of employment expense claim forms from repayment agents. We are bringing in the new prescribed P87 form so we can have a consistent standard coming into HMRC, to allow us to process these applications more efficiently. Standardisation will also help us to start automating the processing of P87s. For automation to work, all forms need to be the same so our systems can scan them and identify the necessary information. This will help us to pick up and process any repayments and coding adjustments more quickly.
What will happen to applications that have been received by HMRC before 7 May 2022 and still not processed?
Any applications received by HMRC on or before 6 May that are not in the prescribed P87 format will continue to be processed.
What will happen if I send in applications in a non-prescribed format on or after 7 May?
Applications received by HMRC on or after 7 May 2022 must be on the prescribed P87 form. Applications received in a non-prescribed form will be rejected and will not be processed.
The repayment agent will receive a letter explaining this and advising that the prescribed P87 form must be used. They will receive only one letter, even if multiple applications have been made using a non-prescribed format. The repayment agent will not receive any further letter prompts if they continue to submit non-prescribed applications, these applications will not be processed.
What will happen if I send in applications on a prescribed P87 form but I do not provide all the requested information?
Please ensure all relevant boxes on the form are completed and that the form is signed by the customer making the claim. We may otherwise need to try to either source the information internally or contact the repayment agent for more information, which is likely to result in the claim outcome being delayed.
We will continue to monitor the standard of applications and will work with those repayment agents who submit high levels of incomplete applications, to understand any difficulties in providing the complete information and highlight HMRC expectations.”
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