Should agents use form P87?

Should agents use form P87?

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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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By carnmores
17th Jan 2013 16:59

have you got 64-8

if not what are the  documents you refer to

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By pjones
17th Jan 2013 17:23

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.

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Replying to sarah douglas:
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By nicolaamies1
19th Jan 2013 09:20

Thank you

I do have a 64-8 for each client but HMRC are still refusing to accept the P87 signed by me.

I was under the impression that there was a financial limit and if you were claiming over £100 then you had to use form P87. I have an HMRC agent account manager looking into it for me so hopefully I will be able to resolve this. Or I will have lots of unhappy clients.

 

I'm sure I could just prepare a document which encompasses all costs for each year but I don't know how to get this approved by HMRC, and all I need is for them to continue to reject claims.

 

Where a client is under self assessment we have not been preparing P87.

 

In the manual you attached, I cannot see where it states that an agent CAN sign the P87, although it does not say that an agent can't! I wonder if I can use this tactic with them.

 

Thank you for your reply anyway, it was really helpful.

 

Kind regards

 

Nicola

 

 

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