HMRC Introduces New Evidence Requirements for PAYE Expense Claims
Published 7th October 2024
Under new HMRC guidelines, PAYE expense claims require supporting evidence from 14 October 2024. This regulatory change affects all employees claiming tax relief on unreimbursed work expenses.
Key Changes to PAYE Expense Claims
Here's the significant change: paper forms are mandatory from 14 October. HMRC has suspended digital submissions following an increase in non-compliant claims. If you're used to submitting claims online, you must switch to the P87 form and provide supporting evidence with each claim.
Have you had a claim suspended since June 2024? HMRC is contacting all affected taxpayers directly. Our Stevenage team at Hammond-Barr can guide you through the resubmission process under these new requirements.
Digital Claim Timeline
HMRC has temporarily suspended both online and telephone claims. While GOV.UK remains available for eligibility checks; all submissions must go through the post until further notice.
Current HMRC guidance confirms that digital claims will return in two phases:
From 31 October 2024: Online claims resume for uniforms, work clothing, and tools
From April 2025: Full digital claim service returns with enhanced verification protocols
Required Evidence Under New Rules
Let's break down what HMRC requires as supporting documentation. For professional memberships, retain payment receipts showing the total subscription cost. Business mileage claims must include detailed logs documenting journey purposes and destinations.
For subsistence claims, HMRC requires dated receipts from accommodation and meals. Home working claims face stricter scrutiny - your employment contract must explicitly state that remote working is mandatory, not optional.
Under current HMRC guidelines, Flat Rate Expense claims for uniforms and tools maintain simplified requirements. While supporting evidence isn't mandatory for these claims, taxpayers remain responsible for meeting HMRC eligibility criteria.
Business Impact
These regulatory changes require immediate attention to expense documentation. Establishing robust tracking systems will ensure compliance with HMRC's enhanced verification requirements.
Need Support?
Let's ensure your claims meet these new requirements. Book a review with our Hammond-Barr team in Stevenage. We'll guide you through the documentation process and ensure you're claiming everything you're entitled to under current tax regulations.
Want to know more?
You can contact Hammond-Barr accountants on 01438 281281 or via email at [email protected].
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