If you are self-employed you are probably wondering what expenses you can and cannot include in your Tax return to claim back a tax rebate. Here we clarify 2 HMRC allowable expenses that may help you claim tax rebates for PPE or training.
To ensure you receive the best possible tax rebate it is essential to keep a record of all your earnings and expenditure. As a general rule, you should keep these records for a minimum of six years.
Tools, PPE and safety footwear
If you work within a sector that requires a uniform or protective wear to help you carry out your work you are able to claim back on those costs in the form of a tax rebate. You can claim back on any tools that you’ve purchased or hired plus any PPE (personal protective equipment) this includes hi-vis, safety footwear and gloves.
There are two ways you can claim. You can either claim for exactly what you have spent with proof of receipt. If you are unsure of the costs or have no records you can claim a flat rate deduction which is a fixed amount based on your profession. It is obviously advisable that you keep back any invoices or receipts during the course of your trade.
If you have paid for any courses for yourself or an employee, you may be able to claim back the cost. This will only apply if the course is to update a current skill and not acquire a new skill set. Common courses would be CSCS for construction workers, or an SIA licence for those working in security.
For example, if your trade is that of a self-employed builder and you undertake any further training to improve your skill set then the costs for this are allowable however if you were to learn a new trade as a tiler within the building site this would not be allowable.
If the training costs are allowable, then any associated costs (e.g. travel, books or stationery) will also be allowable expenses.
If you are in the construction industry and need some additional skills, or, you are thinking of re-training to become a self-employed electrician, plasterer, or plumber visit ACCESS training.