Job Expenses Tax Relief: How to Claim Tax Relief on Job Expenses Using Form P87

If you pay for work-related expenses that your employer does not reimburse, you may be entitled to job expenses tax relief. HMRC allows employees, including company directors taxed under PAYE, to claim tax relief on certain employment expenses, provided they meet strict eligibility conditions. This differs from the self-employed position, where a broader range of costs you can claim back when self-employed are deducted directly against business profits rather than claimed as personal relief. For the 2026/27 tax year, understanding these rules is essential to avoid incorrect claims and ensure you receive any relief you are entitled to. Job expenses relief is one small part of the wider Income Tax system explained in our ultimate guide to personal tax in the UK, which covers rates, allowances and reporting more broadly. Many employees either miss out on legitimate employee tax relief or submit claims that HMRC later rejects because the expenses do not meet the necessary conditions. This guide explains which expenses qualify, how Form P87 works, common mistakes to avoid and how to make a successful claim.

What Is Job Expenses Tax Relief?

Job expenses tax relief is essentially what is an allowable expense looks like for an employee — it lets you claim Income Tax relief on qualifying costs you’ve personally paid while carrying out your employment duties. The expenses must generally be incurred wholly, exclusively and necessarily for the purposes of performing your job, and your employer must not have reimbursed the cost. It is important to remember that tax relief is not a refund of the full expense. Instead, you receive tax relief at your highest rate of Income Tax.

• A basic-rate taxpayer (20%) claiming £100 of allowable expenses would normally receive £20 in tax relief.
• A higher-rate taxpayer (40%) claiming £100 of allowable expenses would normally receive £40 in tax relief.
• An additional-rate taxpayer receives relief at their applicable marginal Income Tax rate.

Working From Home Tax Relief

For the 2026/27 tax year, you may be able to claim job expenses tax relief if your employer requires you to work from home and you incur additional household running costs as a direct result. Relief is generally available only where home working is a requirement of your employment. If you choose to work from home voluntarily, HMRC will usually not allow a claim for household expenses.

Flat Rate Allowance

HMRC allows eligible employees to claim a flat-rate allowance of £6 per week without having to provide evidence of the additional household costs.

• If your employer pays you up to £6 per week, the payment is normally tax-free.
• If your employer does not reimburse you, you may claim tax relief from HMRC on the allowance.

Claiming More Than £6 Per Week

If your additional household costs exceed £6 per week, you may be able to claim a higher amount. However, you must retain evidence showing the extra costs were incurred because you were required to work from home. Only additional household costs qualify. Expenses you would have paid regardless, such as standard broadband packages or normal household bills, cannot usually be claimed unless the additional business cost can be clearly identified.

Equipment Purchased for Work

You may also qualify for employee tax relief if you purchase equipment that is necessary for carrying out your employment and your employer does not reimburse the cost. Examples include:

• Laptops.
• Office chairs.
• Computer accessories.
• Specialist equipment required for your role.

Where the role also requires specific clothing or tools rather than general office equipment, it may be more straightforward to claim flat-rate expenses for work clothing and tools instead, since HMRC publishes set amounts for many common occupations. The equipment must be necessary for your employment and should not be purchased primarily for personal use. Where significant private use exists, HMRC may refuse the claim. A related but distinct area is training tax relief, which follows its own rules around whether a course maintains existing skills or prepares you for a different role entirely.

Business Mileage Claims

If you use your own vehicle for qualifying business journeys, you may be entitled to claim tax relief on job expenses where your employer pays less than HMRC’s approved mileage rates. The relief applies only to genuine business travel. Ordinary commuting between your home and your permanent workplace is not eligible for tax relief. If your employer reimburses mileage below HMRC’s approved rates, you may claim tax relief on the difference rather than the full mileage cost.

How to Claim Using Form P87

If you are not required to complete a Self Assessment tax return, you can normally use Form P87 to claim qualifying employment expenses from HMRC. The form can usually be submitted online through your Personal Tax Account or by using HMRC’s alternative claim methods where appropriate. If you already complete a Self Assessment return, qualifying HMRC job expenses should normally be claimed within your tax return instead of using Form P87.

Backdating Claims

HMRC generally allows employees to backdate claims for up to four previous tax years, provided they were eligible during those years and the claim is made within the relevant statutory time limits. Delaying a claim could result in losing entitlement for older tax years, so it is worth reviewing any unreimbursed employment expenses as soon as possible.

Common Mistakes to Avoid

Many unsuccessful claims arise because employees misunderstand HMRC’s eligibility rules. Common mistakes include:

• Claiming home working expenses where working from home is voluntary.
• Claiming ordinary commuting costs.
• Claiming broadband or household bills that would have been incurred anyway.
• Failing to keep evidence when claiming more than the £6 weekly flat rate.
• Assuming temporary COVID-19 homeworking concessions still apply for the 2026/27 tax year.

HMRC may request supporting evidence for your claim. If an expense does not meet the statutory conditions, the claim may be reduced or refused. This same evidence-based approach applies when claiming professional fees and subscriptions, where HMRC also expects proof that the membership relates directly to your role.

Practical Examples

Example 1: An employee is contractually required to work from home three days each week. Their employer does not reimburse household costs, so they successfully claim tax relief on the £6 weekly flat-rate allowance. Example 2: An employee purchases an office chair required for their role and receives no reimbursement from their employer. Provided the chair is necessary for their duties, tax relief may be available at the employee’s marginal Income Tax rate. Example 3: An employee drives to temporary client sites using their own vehicle. Their employer reimburses mileage below HMRC’s approved rate, so they claim tax relief on the difference.

Making a Successful Job Expenses Tax Relief Claim

Claiming job expenses tax relief can reduce the cost of genuine employment expenses, provided you meet HMRC’s eligibility conditions. Whether you are claiming relief for working from home, business mileage or equipment purchased for your role, you should ensure the expense was necessary for your employment, has not been reimbursed by your employer and is supported by appropriate records. Reviewing your HMRC job expenses carefully before submitting a claim can help prevent delays, minimise the risk of enquiries and ensure you receive the employee tax relief you are entitled to. By contrast, costs such as client hospitality fall under the separate taxation of entertainment expenses, which follows much stricter rules regardless of who pays. If you are unsure whether a particular expense qualifies, obtaining professional advice before making a claim can help you avoid costly mistakes.

Job Expenses Tax Relief Case Study

Emma, an operations manager, visited our Wimbledon office after realising she had personally paid for several work-related expenses that her employer had not reimbursed. She had purchased an ergonomic office chair for mandatory home working, travelled to temporary client sites using her own car and covered other employment costs throughout the year. Having heard about job expenses tax relief, she wanted to know whether she could make a claim using Form P87.

After reviewing her employment contract and expenses, we explained that HMRC only allows relief where costs are incurred wholly, exclusively and necessarily for employment duties and have not been reimbursed by the employer. We confirmed that some of Emma’s expenses could qualify, including relief for business mileage where her employer paid below HMRC’s approved rates, while ordinary commuting and general household costs remained ineligible.

During the meeting, Emma also discovered that she could still claim for eligible unreimbursed expenses from previous tax years, provided they fell within HMRC’s time limits and she retained supporting evidence.

By the end of the review, Emma understood how keeping accurate records and checking HMRC’s eligibility rules before submitting Form P87 would help her maximise legitimate tax relief while avoiding delays or rejected claims.