How to Use P87 HMRC Form to Claim Tax Relief? 2025

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For employees, if you havent claimed allowable job expenses for previous years, you may be able to submit a backdated claim. HMRC allows claims for up to four tax years, and any refund due will either adjust your tax code or result in a tax repayment.
Claiming a refund If you are completing the downloadable form R40, you should input the net interest in box 3.1 Net interest paid by banks, buildings societies etc, purchased life annuities and PPI payments after tax taken off. You should then input the tax deducted in box 3.2 and the gross amount in box 3.3.
Takeaways: Expenses must be claimed in the year theyre incurred or paid for. You can file an amended return using Form 1040X if you missed a deduction from the previous year.
If you file your tax return online, you can prompt a repayment by logging into your HMRC online services account and clicking Request a repayment. Otherwise, you can contact HMRC to request repayment.
The expenditures which pertain to the earlier previous years are generally called prior period expenses. The mercantile system of accounting requires that expenditure should be claimed in the year to which they pertain to.
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If you think you have overpaid tax in tax years that are closed to claims, there is a rule known as Extra-statutory Concession B41 which can allow HMRC to repay tax for those earlier years.
You can claim allowable business expenses for costs such as: employee and staff salaries. bonuses. pensions.

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