Being self employed n trying not to give generously to the taxman

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My little son in law is an apprentice plumber, I told him to keep all his receipts for his tools to claim off against his tax. He's just done his tax return but he's hardly paid any tax cos he's on rubbish money. This current year he's on better money, can he use his last year's tool receipts to offset this year's tax?
 
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Yes, self employed and works for one bloke, no formal apprenticeship, just a 'get in the van n make me some cash' kind of employment
 
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I think you can claim pre trade expenses up to 7 years after start up. So if he bought the tools before he started trading he could wait until the year when he pays enuff tax to claim it back I guess. If he bought the gear during his first year I'm not sure.
TBH reading between the lines. I think he'd be better of getting an employed position while he "trains".
 
As I understand things, but have no experience of CIS

If self employed you can claim for any and all legitimate so called business expenses, such as.

Cost of mobile phone, purchase, calls, Etc.
Travel cost, which will include cost of any sort of travel associated with work, such as HP for the vehicle, fuel, and associated mileage, cost of maintenance and Garage bills [assuming he has some sort of vehicle] even a motor bike?
Cleaning of work clothing.
Cost of landline, his boss may need to call him on that phone.
Cost of clothing including PPE and safety gear, boots Etc. keep receipts!
If he does any work from home, such as paperwork then such activity can attract some tax deductions, cost of light, heat Etc.

Now for a potential kicker??

If your relative is only working for one person [firm] then he is not at times in the eyes of the Revenue actually "Self Employed" to be "Self Employed" a person has to work for more than one "Employer"

Recent [Pimlicoe Plumbers] court case may mean that the Claimant won the right to holiday pay Etc, Etc, Etc

OK that is now Law, but that does not mean that it will work in practice.

I am with MITCH on this one see if your Relative can find shall I call it more "Formal" work as an Apprentice.

Ken.
 
CIS is still self employed, so the same rules apply. The only difference is that at the end of the year, the tax is calculated as normal and then the tax already paid is deducted, possibly meaning a rebate.

I would have thought formal training would be needed to become a qualified plumber.
 
If he is doing an apprenticeship with a firm how is that self employed?
 
His employment status in terms of worker rights, doesn't affect his right to claim work related expenses.
 
OK if you are "employed " by one person or organisation, the Revenue will consider that you are "Employed"

But if you work for several firms you are self employed.

If you work for an Employer AND you have a portfolio of "private" clients for whom you work then the Revenue consider that you are "Self-Employed"

Please be very, very careful around the point, it can prove expensive?

Ken.
 
From a expenses point of view the difference between being an employee or a self employed person is really not that different. The key thing is that he does not go to the same place of work each day. The items discussed in this thread are legitimate expenses for both self-employed and employed. The pimlico example affects statutory worker rights not tax/expenses.

https://www.gov.uk/expenses-if-youre-self-employed

https://www.gov.uk/tax-relief-for-employees
 
Yes, self employed and works for one bloke, no formal apprenticeship, just a 'get in the van n make me some cash' kind of employment
ROFL....good luck running that past the inland revenue as self employed.if he works for one bloke and the bloke pays him..surplies tools,vehicle, passes him work or woteva then he aint self employed
 
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