Can I claim back all money spent on van and tools under the AIA (uk tax)?

you want to tread carefully Alex CIS is only part self employed full self employment means you receive all your wages and pay your own tax and claim expenses also the tax man frowns on working for the same employer for the majority of the time he likes a few different names on the list per year this how it was I did it for 40 years on the building you can claim a bit but not as much as if you are fully registered you see your employer is getting away with a lot of NI and all the other things of full employment and he is all but employing you long term we used to job around a bit get some more names on the tickets even if it's a few foreigners it's always difficult getting gear together it takes time try car boots for some cheap things to get you by till you can get some good stuff tread carefully with the tax he's a killer you won't jump in with all your tools none of us do it takes years to build up a good kit you know what you do and the most important tools get them first and build up don't put yourself in debt the building is a harsh place you could be out of work and in debt good luck mate

If all these are used only for work, then they are tax-deductible. This does NOT mean you get the whole cost of them back.

Being self-employed (or at least treated as self-employed), you are taxed on your taxable profit. You take the costs of mileage, running costs of car, van, tools, plant etc off what you get paid, and what is left is your profit. The effect is that if you have £5,000 of expenses, then with tax at 20%, it saves you £1,000 of tax. The way a properly self-employed person will work it is to charge customers enough to cover their expenses and still give themselves a wage as well, knowing that they'll still be paying the other £4,000 out of their own pocket. So it's still worth shopping around to save money on your tools.

Gerald is worth listening to - CIS is not full self-employment so what you can claim is a bit limited. As he says, the reason employers like it is that it's much cheaper for them. For an employee, they have to pay employer's NI, which is actually slightly higher than what they have to deduct from the employee's wages, so the cost of hiring someone is that much higher than the actual gross pay. It has been called a "jobs tax". But if they can treat you as self-employed, they don't have to pay that.

As he also says, HMRC get a bit suspicious if you are working for the same place all the time. The question in their minds is "why aren't you an employee, then?"

I happen to be an accountant and if you employed me to give you this advice, my fees are tax-deductible as well. Now where do I send my bill to? :) Only kidding, of course, but seriously, paying for an hour or two with one who is more expert on CIS than I am could be well worth it, and you might pick up a few hints and tips on where else you can save tax.

You claim necessary expenditure only (and you should have proofs on hand if requested). THis expenditure is then applied as a tax allowance.

Say you only pay basic rate tax (20%) and you claim £1000 in expenses - your tax is reduced by £200.

A van purchase would usually be regarded as Capital Expenditure - phone the S.A. helpline for guidance on this

All needed expenditure is (at best) treated as a tax allowance and that much is treated as tax free.

If you income reaches higher rate tax (as a fair number in CIS are) you will have a tax bill which is reduced by 40% of the expenditure.

Receipts are NOT submitted with the return, detailed breakdown is NOT required - just the tax return.

The tools yes, but the van is different, plus these expenses go into next years tax claim

Make an appointment for a one of session with an accountant

His costs will more than cover what you will save in expenses claims

uk

You won't get anything back unless you hire an accountant to do a proper set of accounts, showing your expenditure and backed up by receipts and invoices. He will then submit those accounts to the Inland Revenue and if they accept them, they might give you something back.

Inland Revenue hate builders because so many of them are crooks doing cash jobs and never paying any tax at all. So be prepared for a reality check now as to how much refund you will actually get.

Sounds like it would be worth your while paying an accountant for an hour or 2 of his time.

Or phone HMRC. They know more about the subject than kids on YA