What Is An S336 Claim?

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This acronym refers to Section 336 of the Income Tax (Earnings and Pensions) Act 2003.  Broadly, if an employer makes a declaration on the P11D, which the employee and HMRC agree can be counted as tax-deductible, this is referred to as an S336 Claim.

This would, generally, be an expense that has been declared by the employer on the P11D which can be justified as wholly, necessarily and exclusively incurred in the performance of the employee’s duties.

As such, there should be no tax liability on the employee, though the S336 Claim is necessary to claim this deduction. HMRC advise that the submission of an S336 Claim is normally the responsibility of the employee.

However, the employer can make an S336 Claim on behalf of an employee/employees.

This claim should be attached to the original paper P11D, which should then be sent to the paper processing room at:

HM Revenue and Customs (NIC&EO) P11D Support Team Tynemouth House Room BP8019 Benton Park View Longbenton Newcastle Upon Tyne NE98 1ZZ

On receipt, HMRC advises that they will keep the S336 Claim and the P11D together to ensure that they are processed together – i.e. the employee’s personal allowances are reduced by the P11D expense, then added back on as a result of the S336 Claim.

An employee can submit an S336 Claim via the P87, Tax Relief for Expenses of Employment, or the P810 Tax Review form.  This is available on request from HMRC.

Alternatively, the employee can make contact with HMRC by letter at HM Revenue and Customs PAYE and Self-Assessment PO Box1970 Liverpool L75 1WX This address can also be used by the employer, on behalf of his employee, if the S336 Claim was not made at the time of the P11D submission.  All communication to this address should include the heading ‘S336 Claim’ together with the employee’s identification information (NI Number etc) and the reason for the claim, i.e. that the expenses were incurred wholly, necessarily and exclusively incurred in the performance of the employee’s duties. Of course, S336 Claims could be reduced if the employer were to consider obtaining a Dispensation from HMRC.

This would prevent the employer from having to declare wholly, necessarily and exclusively incurred expenses on the P11D in the first instance.

See ‘How to get allowances and reliefs – employees or directors’ on HMRC’s Website.

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