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.

HMRC stated: ‘Recently, we have identified a growing tax risk driven by ineligible claims for employment expenses.

‘We want to make sure that customers get the tax relief they are entitled to in as straightforward a way as possible. However, we also need to make sure that we identify where customers are not eligible and prevent them receiving payments they are not entitled to.