Employed and wanting to claim back equipment vat

[munky0211]

The firm you work for,i believe is responsible for all your ppe,

That is concrete!

With respect to tool allowance,i'm looking into.

I get £200 a mth allowance for machinery,climbing gear etc.

This allowance is part of my my salary of which i'm taxed,

Am i able to claim the vat back on my spends?

I believe yes.

Any thoughts or experiences fellas?

Cheers kev

 

 

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[Inoff the Red]

Munky…

You can only claim VAT back if you are VAT registered and so if you are employed (as opposed to self employed) you cannot recover VAT paid on equipment purchased BUT……..read on…...

 

If you have to provide your own saws and equipment for work and this requirement is recorded in your contract of employment, then, each year you can claim for the cost (including any VAT) of all of your equipment purchases, oils etc (and safety clothing helmet, boots, professional subscriptions etc).

 

You can't ask for tax relief if your employer has reimbursed you for the expenses incurred but, if your employer pays an allowance which is taxed, then there is nothing to stop you from claiming tax relief on your equipment costs etc.

 

Claiming for travelling costs is another area where many people miss out on claiming. You cannot claim the cost of travelling from home to your work base, but you can claim for the costs of travelling to site if you work away from your employment base.

 

Employers can choose what rate to reimburse mileage expenses. Since 6 April 2011, for cars and vans HMRC will allow payment of 45p per mile for the first 10,000 miles and then 25p per mile thereafter. (Prior to 5 April 2011 the rates were 40p and 25p).

 

If your employer currently pays you less than 45p per mile, you can claim the difference as an expense of your employment.

 

Also, if you pay for your own mobile phone and you use it when at work, then imho there is an argument for claiming those costs also.

[munky0211]

Thanks for that in off the red,

Very helpful

 

 

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[eggsarascal]

if you use your vehical for work other than going to yard you can claim was 45p per mile. as for clothing you can offset some of your tax for clothing you have had to get to do work at year end you would need to do a HMRC form for milage so you need to record your milage you do it was daily so can be a choreif not doing many miles. and a return for clothing but you will need t check with HMRC. as for fuel you can claim this back from your boss and he can ofset this in his books that he pays milage. DRAWBACK if you use a company car you will pay £5k a year in tax if you use it for private use if it belongs to company. i used my own and charged the company. but if you do over 10k a year it drops to a lower band and it is not worth using own.

i was at end due to the goverment having such a paltry milage rate. that i was only just breaking even with cost of fuel servicing tyres it soon added up. never go down that road again big mistake

 

Are you sure about the £5k?

 

Mrs Egg used to do the cash for your car scheme, she now has a company car which she and I can use privately and pays £840 a year in tax for it. (It's a 1.3 diesel Astra, if it matters.)

[Kev Stephenson]

It matters massively what vehicle you have for company car tax. A cheap car with really low emissions cost 3 parts of f' all in tax, something like a discovery 3 or 4 is hundreds a month. It is also based on cost when new not actual cost so a 10 year old discovery 3 could cost more than a more efficient brand new discovery 4.

 

My missus has a brand new BMW X1 which is about £200 per month in tax

[Inoff the Red]

The benefit in kind calculation for a company car is based on the vehicle's carbon emissions and the manufacturers list price of the car when new. (Note, LIST PRICE WHEN NEW, not what the car actually cost).

 

The value of the benefit in kind for cars with low emissions (1- 75gms/km) is 5% of the list price.

For a car with high emissions (220 gms/km +) the annual benefit is 35% of the list price.

 

So as an example, a company car with a list price of £40k with high emissions will land the driver with a benefit in kind of £14,000 (£40k x 35%). For a 40% tax payer, this will result in tax payable of £5,600.

 

In addition, if the employer provides fuel for private use, there will be an additional benefit which will further increase tax payable.

 

The fuel benefit is based on a fixed amount (£20,200 for 2012/13; £21,200 for 2013/14) and the benefit is calculated by applying the emissions percentage to this fixed sum. so continuing the example above, the fuel benefit would be £7,070 (£20,200 x 35%) resulting in tax payable of £2,828.

 

The days when company cars used to be worth having disappeared long ago imho.

[Rupe]

The firm you work for,i believe is responsible for all your ppe,

That is concrete!

With respect to tool allowance,i'm looking into.

I get £200 a mth allowance for machinery,climbing gear etc.

This allowance is part of my my salary of which i'm taxed,

Am i able to claim the vat back on my spends?

I believe yes.

Any thoughts or experiences fellas?

Cheers kev

 

 

Sent using Arbtalk Mobile App

 

Not concrete at all!! As I said the employer is responsible for making sure you have correct ppe and that you use it, this does not mean he has to provide it. If you turn up one day without ppe he can provide you with some if he wants, or send you home, or give you other work. It's quite possible that providing your own ppe could be part of an employment contract (usually with an allowance as we are discussing) and so if you turn up without it one day he can send you home and take disciplinary action against you.

There is no legal requirement to provide pep but there is legal requirement to ensure you have it and this can be achieved in many ways.

 

 

To put it another way, if it were a legal requirement for employers to provide ppe then no one would be allowed to buy there own fancy trousers and boots and we would all be wearing cheapo Stein crap or something!!

 

Your all entitled to buy your own fancy ppe, even if you don't get any allowance for it, as long as your wearing it then all good!

 

So, your right in that the employer must provide ppe if he wants you to use a chainsaw and you don't already have ppe, but he doesn't have to buy it.

[chrisj]

The H&S consultants that the company I previously worked for called in said that they had to provide PPE (the company didn't up to that point). BUT they only had to provide necessary PPE not the PPE you wanted. So they could find the cheapest nastiest £10 a pair safety boots and say this is what we issue if you don't like them and want different you have to buy them yourself but you must wear safety boots or you can't work.

In the end they said everyone could pick up 1 pair of boots (from the builders merchants that we had an account with) per year, any more you had to pay for. Then they hung several sets of cheap nasty waterproofs in the shed for anyone to use that wanted to, but no surprise we all bought our own better ones.

[hedgesparrow]

Are you sure about the £5k?

 

Mrs Egg used to do the cash for your car scheme, she now has a company car which she and I can use privately and pays £840 a year in tax for it. (It's a 1.3 diesel Astra, if it matters.)

 

its based on your tax code but its 5k mine never came to5k with alowances and other things i only paid about £900. but its something you have to think of that it reduces your tax alowance per year so you pay HMRC more

as for milage it still the same 45p and 25p when i was doing 50k a year at 25p a mile does not go far covering the cost of fuel now hence never go down that route cheaper to use company vehical andpay the tax

[richy_B]

Something not quite related but worth knowing is that if you have to clean your own PPE/Uniform you get tax relief. This can be back dated up to 4 years as well I believe. I used to 'save' £75 pa because I informed HMRC that I had to wash my own kit.