Builders tax rebate guide

Roughly, how much do you pay out for work tools and travel in a year? We know … it’s a lot when you stop and think about it.

On the up side, as a Builder you are fully entitled to reclaim the tax you have paid on tools you exclusively use for work and travel between temporary workplaces. This is never an automatic refund from HMRC meaning you do have to make a work expenses tax relief claim to get your money refunded.

Good to know:

  • You can backdate a work expenses tax relief claim for the last four tax years.
  • It doesn’t matter how many different employers you have had in that time.

Builders under PAYE and CIS are eligible

Simultaneously earning income from both self employment under CIS and PAYE jobs is quite common for builders like you. Most builders don’t realise that the tax relief they claim for their self employed work expenses also applies to their PAYE employment as well.

Our Builders tax rebate guide points you in the right direction to discover the tax rebates you could be entitled to.

What expenses can a Builder claim for?

Most builders are missing out on their entitlement because they don’t realise they are eligible to claim.

Some of the most common allowances claimed by builders include:

  • Health and Safety items, including buying and cleaning clothing and boots.
  • Mileage when you use your own vehicle for work travel to a ‘temporary workplace’. This means a location that you work at for no more than 24 months.
  • Tools; try our tool calculator to give you a personalised idea of what you can reclaim.
  • Subsistence and accommodation if you are required to stay away from home to work at a temporary workplace.

Do I need receipts to make a claim?

Part of the difficulty with HMRC’s regulations is that not all work expenses tax relief claims require the same level of evidence. There are some things that do not require any receipts and some that do. At the most basic level you will need some information from your payslips like you NI number and a list of where you worked if you are claiming for travel expenses.

It’s definitely worth keeping your receipts and a travel log from today to support your future claims.

How do I claim a builders tax rebate?

To get started you will need to submit a P87 employment expenses form which can be submitted online or by post directly to HMRC. You should submit a P87 if your claim is worth less than £2500 in any one tax year.

If your claim is valued at £2500 or more a self assessment tax return is typically needed for each tax year.

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