may be a silly question, but I have often wondered!
My boyfriend works for a quite a big tyre company, he is employed by them.
My question is that he spends a lot on tools for his trade, is there a way that he would be able to claim perhaps a tax deduction or claim back the vat.
To be honest this is the first time I have been asked and am thinking there may be a way around this or NOT!!!!
I thought it would be worth asking as he has spent a considerable fortune on his tools.
He could claim for the tools on his tax return if they are used wholly for his job. He wouldn't be abel to claim back the VAT unless he was a VAT registered business, but he would be able to claim the total cost of the goods. It's like uniforms or safety boots if they are obligatory and not provided by the employer.
Just to go a bit further than Sheila on this, it is 'wholly, exclusively and necessarily' for an employed person. If it was agreed by hmrc then he could get an annual allowance added to his tax code.
thank you for your replies, he is a mechanic, and his tool box is kept at his work. He never uses the tools outside of work. They are wholly and exclusively for his employed job.
If he did not have the tools it is obvious that he would not be able to do the job.
However, his employer would not employ him if he were not able to do the job. Does that mean that tools are available from the employer but he chooses to use his own?
If he were self employed then tools used only to do the job are purchased Wholly and exclusively for the job. It does not matter that the employer has alternative tools. The fact is the tools were purchased to do that job of work, and only to do that job of work.
If you are employed then if alternatives are available then it is not neccessary for you to buy your own tools so they are not allowable.
Where it is necessary to purchase the tools yourself then as a starting point take a look at http://www.hmrc.gov.uk/incometax/relief-tools.htm as he should also be able to claim for past expenditure on tools.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
okay, the company doesn't supply the tools, he has to buy his own I believe, I will talk to him tonight! thank you for your replies, also it goes back about 10 yrs and I don't think he has any of the receipts, but I will have to tell him to keep all his receipts from now on.
