Apprentice bricklayer - does this seem reasonable ?

densol_2

My nephew 19 - started almost at the beginning of 2014/2015 tax year as self employed with a company - he was CIS - he proved himself at work, bought some tools ( and they bought some for him ) and they took him on PAYE after 5 weeks. So SE just 5 weeks.

I'm helping him with his tax return. I plan to claim tool expenses when SE and a little mileage to go to buy them, and then some more tools when employed, plus replacement PPE ( clothing ) and a little mileage to go buy. He has all receipts.

With the CIS TAX deducted at 20% and the expenses he is due a refund.

Expenses to set up as bricklayer from brand new - around £600 mileage £ 70 odd - income around £14k - sound reasonable ?

jimmo

Strictly speaking employment and self-employment are two different things and your self employed nephew is regarded as having sold his tools and equipment (at market value) to the employee who would then make a separate claim for that.
However, as long as the £670 claim does not create a loss for the 5 weeks of self-employment I wouldn’t worry about it and claim as you have suggested.

martinsurrey

jimmo wrote: »

Strictly speaking employment and self-employment are two different things and your self employed nephew is regarded as having sold his tools and equipment (at market value) to the employee who would then make a separate claim for that.
However, as long as the £670 claim does not create a loss for the 5 weeks of self-employment I wouldn’t worry about it and claim as you have suggested.

nope,

If the tools that the nephew bought do not belong to the employer they are not relevant to the company at all.

The nephew is simply using his own tools for a PAYE job, and CAN claim them as a cost against his PAYE self assessment.

https://www.gov.uk/tax-relief-for-employees/uniforms-work-clothing-and-tools

you'll need to split the cost as follows:

Cost new - Cost second hand = self employed deduction for tools
Cost second hand = PAYE deduction for tools.

Simple