From 6 May new secondary legislation came into force allowing HMRC to specify the format of P87 applications. HMRC has updated the form they want customers to use on GOV.UK and from 7 May 2022 all P87 applications must be made on this form.
HMRC receive a wide variety of employment expense claim forms from repayment agents. Therefore, they are bringing in the new P87 form so that they have a consistent standard coming into HMRC. This allows them to process these applications more efficiently and will allow them to start automating the processing of P87s. For automation to work, all forms need to be the same, so that their systems can scan them and identify the necessary information. This will help them to pick up and process any repayments and coding adjustments more quickly.
Any applications received by HMRC on or before 6 May that are not in the prescribed P87 format will continue to be processed.
Applications received by HMRC on or after 7 May 2022 must be on the prescribed P87 form. Applications received in a non-prescribed form will not be processed. The repayment agent will receive a letter explaining this and advising that the prescribed P87 form must be used. They will receive only one letter, even if multiple or later applications are made using a non-prescribed format. The applications will not be returned to the repayment agent.
Repayment agents should ensure all relevant boxes on the form are completed and that the form is signed by the customer making the claim. If there is information missing, HMRC will try to source the information internally or contact the repayment agent for more information. Missing information is likely to result in a delay in processing the claim.
HMRC will continue to monitor the standard of applications and will work with those repayment agents who submit high levels of incomplete applications, to understand any difficulties in providing the complete information and highlight HMRC expectations.
Repayment agents should still use the prescribed P87 form to make the application and include the additional information/evidence with the form when sending it to HMRC.
They can continue to submit assignments, 64-8s etc as part of the application. But to ensure payments are made quickly to the repayment agent through future automation, it is quicker to complete the nominee information on the P87 form.
Where HMRC determine that a valid assignment has been received, they will process the assignment but not the application. Repayment agents will receive a letter explaining this and advising that the prescribed P87 form must be used.
To submit paper P87 applications to HMRC, forms must be printed, and all 8 pages of the form need to be submitted. Forms can be printed in black and white or colour and can be printed single or double-sided.
Repayment agents can replicate the HMRC-produced form so that it can be populated using their own software. But for any replica to be deemed a prescribed P87, it must be set out exactly as the prescribed P87 form on GOV.UK, ensuring the position, size and behaviour of each data entry field is accurately replicated.
If essential, a minor addition by the repayment agent to the HMRC-produced P87 form (e.g. a small logo, company name or barcode) which does not affect the basic format, size, layout or general integrity of the data fields will be accepted as being a prescribed form. If Repayment agents are in any doubt, they should contact HMRC.
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