Claiming back VAT on equipment bought for work

trebor724

Hi,
I have just been chatting to my stepson, who has been working as a vehicle technician for the last three or so years. So that he can carry out his job he is required to purchase his own tools and equipment. Would anyone be able to clarify if he is able to reclaim the VAT on his purchases and how he could do it. I have look on the HM revenue and customs website but it doesn't appear to be that clear.

many thanks

Owain_Moneysaver

He may be able to claim tax relief.

http://www.hmrc.gov.uk/incometax/relief-tools.htm

ILW

Is he VAT registered?

Hammyman

trebor724 wrote: »

Hi,
I have just been chatting to my stepson, who has been working as a vehicle technician for the last three or so years. So that he can carry out his job he is required to purchase his own tools and equipment. Would anyone be able to clarify if he is able to reclaim the VAT on his purchases and how he could do it. I have look on the HM revenue and customs website but it doesn't appear to be that clear.

many thanks

If he is VAT registered, he can claim back the VAT. If he is not VAT registered, he can claim for tools and equipment via a P87 Expenses in Employment but not retrospectively for previous tax years.

The correct answer is phone HMRC for clarification.

Mistral001

As far as I know you cannot claim back VAT unless you are registered for VAT. If you know someone who is registered for VAT and they buy it for you and charge you the cost net of VAT, then they can claim back the VAT, but I am not sure if this strictly legal as it will not be in connection with their business but someone else's business.

InsideInsurance

What is their legal relationship with the company? Is he an employee? a contractor? Self Employed? If either of the last two then is he a sole trader? Formed his own LTD? Using an umbrella?

trebor724

many thanks for all your responses. They have been very helpful and my stepson will get in touch with HMRC and he has the link for "Tax Relief for specialist tools andclothing"