HMRC P87 - can anyone help with home working expenses?

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HMRC P87 - can anyone help with home working expenses?

9 posts & 5 voices | Started 3 months ago by allmountain76 | Latest reply from allmountain76

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allmountain76 - Member

Are there any HMRC or accountants who can help please??

I recently discovered that i can claim a flat rate tax allowance of £3 per week excluding holidays for heating, lighting etc as im home based.

I called HMRC and was told to fill in a P87.

I was also told i could back date claims and to write a covering letter detailing this.

I'm struggling with the P87 as it doesn't seem to have an appropriate section for this type of expense. Any ideas?

http://www.hmrc.gov.uk/forms/p87.pdf

I guess it goes under the "other expenses" section but in what format? Total for the last tax year?

I tried calling HMRC back but its the deadline for self assessment and industrial action is happening....

Posted 3 months ago #
maccruiskeen - Member

I tried calling HMRC back but its the deadline for self assessment and industrial action is happening....

Deadline extended

Posted 3 months ago #
allmountain76 - Member

Its a right pain for people trying to sort PAYE matters..

Posted 3 months ago #
jota180 - Member

So is that £3 ie ~135 added to your code?

I've been a home worker for 10 years and never claimed
Might give it a go, see if I can get the last 6 years back

Posted 3 months ago #
ScottChegg - Member

Stick it in section 5 - General Expenses. I'd put £150 (as 50 x £3, you have holidays, don't you?) and stand well back.

I doubt there would be any deep audit on the basis of such a claim, and stick a letter in describing how you calculated the figure.

Posted 3 months ago #
madhouse - Member

Looks like you'd fill in section 4, not sure what you'd call it but I'd go with 'Heat and Light allowance', then put the amount in the spent column and nothing in the repaid to you column.

I'm not a personal accountant though, I work on the commercial side of things.

Posted 3 months ago #
allmountain76 - Member

Its £3 per week flat rate. HMRC reccomends 48 weeks due to public and personal holidays etc. So £144 per annum. Ive not claimed it for 8 years of home working. Apparently it can be back dated and is offered as a refund and then going forward can be included in your tax code to increase you tax free allowance.

I was asked to write a cover letter for the backdated stuff and fill in the P87 to claim 2011/12 year.

Im going for section 4. Section 5 is for what you have been paid if i've read it right.

Posted 3 months ago #
allmountain76 - Member

"When you can get tax relief for household expenses
If you have to work at or from home you can get tax relief for the extra household expenses that you have to pay. Typically these extra expenses include:
the extra cost of gas and electricity to heat and light your work area
business telephone calls
You won't be able to get relief on domestic expenses that you're paying anyway - like your mortgage or council tax. You also won't be able to get relief for expenses that relate to both business and private use - such as your telephone line rental, or Internet access.
How much relief you can get
You can get either:
A flat rate deduction of £3.00 per week (from 2008-09) for each week that you've got to work at home. This doesn't include the cost of business telephone calls.
A larger amount if your extra expenses are higher than £3.00 - but you'll have to show how you've calculated the figure.
The rate for 2007-08 and earlier is £2.00 per week."

From HMRC

Posted 3 months ago #
allmountain76 - Member

And the limit you can go back:

Time limits for getting tax relief
The time limits for asking for tax relief for your expenses are shown in the table below.
Time limits for getting tax relief if you don’t complete a tax return
Tax year Tax year ended on You must claim by:
2005-06 5 April 2006 31 January 2012
2006-07 5 April 2007 31 March 2012
2007-08 5 April 2008 5 April 2012
2008-09 5 April 2009 5 April 2013
2009-10 5 April 2010 5 April 2014
2010-11 5 April 2011 5 April 2015

Posted 3 months ago #

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