Introduction to this document

Flow chart - employee expenses payments

As an employee or director if you incur expenses relating to your job you might be entitled to claim a tax deduction for them. However, there are rules and procedures which HMRC applies rigorously.

Flow chart

The Flow Chart - Employee Expenses Payments will help you decide if you can claim a tax deduction for a job-related expense and how you can claim a deduction.

Definitions for the flow chart:

  • Flat or scale rate deductions - deductions which are subject to special rules and may be claimed regardless of how much actual expense is incurred. For example, such deductions apply for subsistence, cars and other vehicles, uniforms and certain subscriptions
  • Form P87 - a non-statutory HMRC document specifically for helping employees and directors formulate a claim for tax relief for job expenses. It can be downloaded at