Is VAT able to be claimed back on Sat navs?

Pickledonionlover

Situation is my mid 20s niece has a zero hours delivery job.

As part of this she is being reimbursed mileage at 0.55.

She's also bought an App called Delm8 which helps her deliver to remote places.

Its about £100 for a year.

She's not a sole trader, or a company or VAT registered.

Is she able to claim any of that back through the HMRC as it's solely used for her job? If so how?

TIA

Grumpy_chap

Situation is my mid 20s niece has a zero hours delivery job.

As part of this she is being reimbursed mileage at 0.55.

She's also bought an App called Delm8 which helps her deliver to remote places.

Its about £100 for a year.

She's not a sole trader, or a company or VAT registered.

Is she able to claim any of that back through the HMRC as it's solely used for her job? If so how?

TIA

If she is not VAT-registered she cannot reclaim input VAT on anything.

She is paid the mileage at the maximum amount that is permitted without incurring liability for income tax (so long as she does not exceed 10k miles per year when the rate reduces). That also means she cannot claim tax relief against any milage that has not been paid at the HMRC limit (as there is none).

Why does she need this £100 per year sat nav? If she does need it, why is the employer not providing it?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82084144#Comment_82084144

Well, they could actually be employed, so not 'very obviously' a soke trader.

QrizB

Well, they could actually be employed, so not 'very obviously' a soke trader.

OP's niece does indeed appear to be an employee:

niece has a zero hours delivery job ... she's not a sole trader, or a company or VAT registered.

And employees can still claim work expenses, which might conceivably include a DelM8 subscription:

https://www.gov.uk/tax-relief-for-employees

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82084155#Comment_82084155

ok, I was too focused on being an entity able to claim VAT so have removed that incorrect comment

as a zero hours contract the person is 100% an employee.

As such the cost of sat nav software will not be allowed as such item is included within the approved mileage rate which this person is getting in full: 55ppm.
In essence it is deemed to be a "gadget" in your car and therefore falls into the cost of operating the car which is what the mileage allowance covers: fuel, servicing, repairs and "gadgets" fitted


If you counter argue that is is a standalone item not part of the car then it would be treated as a capital item, and subject to the "necessary" test which is added to the wholly and exclusively tests in an employee context.

EIM36560 - Deductions from earnings: capital allowances: necessarily provided: the need to establish whether the employer would provide the plant or machinery - HMRC internal manual - GOV.UK

sheramber

You can only claim tax relief for equipment expenses if:

• you need it to do your job
• you use the equipment for work and there’s no significant private use - this includes using the equipment according to your organisation’s policy

How to claim

When you claim, you must make clear what employment the claims are for, and send evidence of what you’ve spent, such as copies of receipts.

Use this service to check:

• if you can claim
• how to claim

https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82084721#Comment_82084721

To whom would the OP send receipts, assuming a valid claim for tax relief was possible (I don't think a claim is valid)?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82084829#Comment_82084829

the HMRC online claim includes requirement to attach receipts
I share your doubt it would be a valid claim item

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82084911#Comment_82084911

But getting that information direct from HMRC will carry more weight than the views of random strangers on a public forum. The OP has no knowledge whether you speak with knowledge or it is only your opinion.

You do say you doubt, not a definite no.

Let the OP find out for himself by directing him to the relevant body.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82084935#Comment_82084935

You are possibly placing too much weighting on the word "doubt" or "I don't think". Very limited information has been provided in the thread, certainly far too little detail for a definitive "no". However, based upon what information has been shared, then the answer would be a "no" - there was enough information to say what the likely position is. If there was really too little information to indicate direction of travel, I would have written to state that and set out the information required to be more definitive.

sheramber

If I was the OP I would rather have a definite answer from HMRC tgan accept a ‘doubtful’ reply.

I give no opinion as to whether any expenses claim would be allowable.

I give the OP the opportunity to find out for himself.

Whether he takes that , or accepts the opinions given, is up to him.