Can I use a P87 form if I'm self-employed?

No. The P87 is HMRC's postal form for employees claiming tax relief on job expenses, up to £2,500 a tax year. If you're self-employed in 2026-27, you claim your costs as business expenses on your Self Assessment return.

People search for the P87 when they want tax back on tools, workwear or mileage. Whether it's the right route depends on whether the cost is for a job or for your own business. The rules below follow GOV.UK as checked on 19 October 2026.

Which route for which cost

What the P87 is for

The P87 is how an employee claims Income Tax relief by post on things they had to buy with their own money and use only for work, such as tools, specialist clothing, professional fees or business miles in their own car. GOV.UK says you can claim by post only if:

• your claim is within 4 years from the end of the tax year you're claiming for
• your total expenses claim for each tax year is £2,500 or less
• you paid tax in the year you're claiming for

Above £2,500 you need a Self Assessment return instead. Employees can also claim online. Since 14 October 2024 HMRC has asked for evidence with these claims, such as receipts or mileage logs (no evidence is needed for an agreed flat rate expense). You get relief at your tax rate: GOV.UK's example is a £60 claim at 20%, which is worth £12.

If you're self-employed

Your work costs aren't job expenses for a P87. They are business expenses, and you take them off your income on your Self Assessment return (and in your quarterly updates once you're in Making Tax Digital). That covers tools, workwear, van costs, materials and the rest. If you use the £1,000 tax-free trading allowance instead, you can't also claim expenses. Our guide to expenses a self-employed trade can claim lists them.

GOV.UK is clear that if you complete a Self Assessment return, you must claim job expenses through your return, not on a P87. That matters for two common cases:

• Employed with self-employed work on the side. Once you send a Self Assessment return for the side work, any expenses from your employed job go in the employment part of that return too.
• CIS subcontractors. If you're self-employed under the Construction Industry Scheme, your expenses go on your return, and the CIS deductions already taken off your pay are set against your tax there. That is where a CIS refund comes from, not a P87. Our guide to claiming a CIS refund explains it.

Working from home

GOV.UK says nobody can claim tax relief for working from home as an employee for 2026-27. That is separate from the self-employed rules, where you can still claim a share of household costs, or the flat rate for business use of your home if you work there 25 hours or more a month.

What this means for you

If all your work is self-employed, forget the P87 and make sure every business cost is in your records for your return. If you're on PAYE in a job and also self-employed, put the job's expenses on your Self Assessment return as well, rather than sending HMRC a separate form. If you only have a PAYE job and spend £2,500 or less a year on job expenses, the P87 or HMRC's online claim is the right route.

This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.

Steps

1. Decide whether the cost was for a job where you're an employee, or for your own business.
2. For your business, record it as an expense and claim it on your Self Assessment return or quarterly update.
3. If you send a Self Assessment return, claim any employed job expenses on it too.
4. If you only have a PAYE job and your expenses are £2,500 or less a year, claim online or on form P87, with your receipts or mileage log.

Use the free MTD check to see when Making Tax Digital starts for you, and the trades section for more guides on tax for trades.