HomeTaxMandating the use of P87 forms: agents’ FAQs

Mandating the use of P87 forms: agents’ FAQs

HMRC is now allowed to specify the format of P87 applications after new legislation came into force.

The Revenue has updated the form they want agents to use on GOV.UK, and going forward all P87 applications must be made on this form.

Geoff Greensmith, HMRC’s Head of Digital Engagement and Communication Services, answered some FAQs from agents in a blog.

Here’s a summary…

Why have you introduced this change?

“We receive a wide variety of employment expense claim forms from repayment agents. We are bringing in the new P87 form so we have a consistent standard coming into HMRC. This will allow us to process these applications more efficiently and will allow us to start automating the processing of P87s.

“For automation to work, all forms need to be the same so our systems can scan them and identify the necessary information. This will help us to pick up and process any repayments and coding adjustments more quickly.”

What will happen to applications that have been received by HMRC before 7 May 2022 and are still not processed?

“Any applications received by HMRC on or before 6 May that are not in the prescribed P87 format will continue to be processed.”

What will happen if I send in applications in a non-prescribed format on or after 7 May?

“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.”

What will happen if I send in applications on a prescribed P87 form but I do not provide all the requested information?

“Please 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 we 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.

“We 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.”

What happens if I need to submit additional information as part of my application?

“You 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.

“You 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.”

What will happen to the assignment if I submit it at the same time as an application in a non-prescribed format?

“Where we have determined that a valid assignment has been received, we will process the assignment but not the application. You will receive a letter explaining this and advising that the prescribed P87 form must be used.”

How should the prescribed P87 forms be printed?

“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.”

Can I replicate the prescribed P87 for my internal business process?

“You can replicate the HMRC-produced form so that it can be populated using your 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 you are in any doubt you should contact HMRC.”

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