Please help!
In July last year I set up a company which helps mainly pilots and cabin crew claim back overpaid tax.
Each client signs a document or indicates electronically that they are happy for me to act on their behalf with HMRC.
I have submitted P87 forms for each client and up until now most of them have been approved, lots after a bit of wrangling with HMRC.
Today I get a letter rejecting 52 claims saying the client has not signed the paperwork! Up until now it was fine and now it isn't? I have authority from the client to act on their behalf with HMRC. I'm obviously doing something wrong and I'm not sure what it is.
Do I need to send P87 forms for each client? At the moment I have been sending one for each tax year but maybe I have been creating more work for myself, and wasting paper in the process!
Thank you for your help.
Nicola
Replies (3)
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No need for the P87
The 64-8 form will allow you to deal with HMRC directly on your clients' behalf - I assume that these are in place as HMRC are corresponding with you regarding these claims.
The P87 claims can I understand be signed by the employee or agent (See http://www.hmrc.gov.uk/manuals/pommanual/paye80010.htm) - in addition one needs to be submitted for each year of a claim however in reality, once HMRC have processed one years claim (i.e. for 2011/12 then they will include the expenses within the employees tax codes so that relief is given at source through their pay.
The alternative would be to simply write a letter claiming relief for the expenses on behalf of the employees - there is no requirement to use the form P87 itself and any written claim will be valid. If a tax return is submitted for the clients then there is no need to make a written claim or fill in the P87 as the claim for relief on these expenses will be shown in the appropriate boxes on the employment pages of the tax return.