can i re-claim the cost of some of my essential power tools?

[elsparko]

can i as an employee still fill out a self assessment and claim capital allowances on tools ive bought? spent about 1600 this year on various tools

 

[HandySparks]

You can claim against any expense your employer doesn’t recompense you for.

You may have to show that: "the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment".

The HMRC rules are a little stricter on employed expenses than on self-employed people.

Work expenses - http://taxaid.org.uk/guides/taxpayers/tax-for-employees/work-expenses

 

[Deleted member 26818]

Vehicles that cost over £50,000 are treated as capital expenditure.
In the first year, you can claim 25% of the purchase price as an expense, there after (I believe) it’s 10% of the remainder each year, until the vehicle is either disposed of or written off.
HMRC have a schedule of rates for depreciation of vehicles.
As long as a vehicle is sold for about what HMRC say it should have depreciated to, there should be no problem.
A £50 grand car that has depreciated to £25 grand, has to be sold for about £25 grand.
If it’s sold for more, it’s a profit, if sold for less, it’s a loss.
After a certain amount of years, a vehicle depreciates to zero and is written off.
The same rules apply to other plant and machinery.

Here’s a list of some of the things that can be claimed by either self employed or employees.
Tools,
PPE,
Work clothing,
Laundry costs of work clothing,
Travel to work somewhere other than your normal place of work,
Subsistence when working somewhere other than your normal place of work,
Accommodation when working away from your normal place of work.
This list is not exhaustive.
HMRC has set Benchmark rates for most of the above, which means they can be claimed without having to produce receipts.

 

[HandySparks]

Vehicles that cost over £50,000 are treated as capital expenditure....

I don't know why you're bringing up the subject of vehicles. As an employee, the OP can't claim capital allowance on vehicles:
Tax relief for employees: Buying other equipment - GOV.UK - https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

 

[Deleted member 26818]

I don't know why you're bringing up the subject of vehicles. As an employee, the OP can't claim capital allowance on vehicles:
Tax relief for employees: Buying other equipment - GOV.UK - https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

Because Elsparko mentioned his MD used to sell his company Supercars to himself.

 

[Squid]

I claimed for a Christmas Tree once as a legitimate business expense, if I can claim for that then you can claim for tools........

 

[Midwest]

When I was on paye, I didn't fill out any tax forms for donkeys. Some colleague said you can claim for some spurious thing for being part of some organisation. Got back about £90 in tax relief.

For the next 5 years hmrc made me complete some poxy tax form. Quite frankly it wasn't worth the £90.

 

[westward10]

I suspect they were lease vehicles and they offered him a good deal to buy it at the end of the term. My boss leased a Golf R and they said he could purchase it for £17k after three years last year. He offered the deal to me, I said no what a mug.

 

[elsparko]

Because Elsparko mentioned his MD used to sell his company Supercars to himself.

was actually a client who sold himself the cars after purchasing through the company when we did jobs for some ROV repair place

he either must have an amazing accountant or is breaking the law given the responses on here lol

 

[Squid]

Before the standard rates came in for sparks form my peers said you'd get paid extra for working at height so of course you left your tools at height so the next day you had to collect them, there is a way around things you just have to be smart enough not to be caught.

 

[HandySparks]

You may have to show that: "the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment".

The HMRC rules are a little stricter on employed expenses than on self-employed people.

Work expenses - http://taxaid.org.uk/guides/taxpayers/tax-for-employees/work-expenses

'the pict'
Why have you rated this 'old'?

 

[Midwest]

'the pict'
Why have you rated this 'old'?

I am some what confused how some give such ratings without actually posting, if you've got something to say, say it. That said the ratings on this 'new' site are a bit ambiguous.

 

[DPG]

I think it's probably 'small icon, fat finger' syndrome when using mobile phones to view the forum.

 

[alasdairp]

tax-relief-for-employees:

You can claim the full cost of tools (and other things), that you need to carry out your job and are you expected to supply, the year you buy them against your employment earnings. You will have to fill in a self-assessment form and maybe one set of supplementary sheets re your employed work. Often well worth the effort.

If you later sell an item you claimed annual investments allowance for then legally you need to report what money you got from the sale as extra (taxable) income. If you keep them for the original purpose then you can eventually just write them off as being valueless. So you should keep a list of what you buy and claim for each year.


Tax relief for employees: Buying other equipment - GOV.UK - https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

9. Buying other equipment
In most cases you can claim tax relief on the full cost of substantial equipment you have to buy to do your work. This is because it qualifies for a type of capital allowance called annual investment allowance.
The annual investement allowanace is up to £200,000 per year since January 2016 - though the high limit is really for companies rather than employed people!

Claim in a different way for small items that’ll last less than 2 years, such as uniforms and tools.

You can’t claim capital allowances for cars, motorbikes or bicycles you use for work, but you may be able to claim for business mileage and fuel costs.