Jun 04, 2020

If you’re a contractor paid via the Construction Industry Scheme (CIS), you can claim a tax rebate on any expenses you incurred in the last financial year (2019/20). You do this via your self-assessment tax return which can be submitted now, enabling you to receive any rebate you’re owed within just a few days.  Given the impact of Coronavirus, the timing couldn’t be better.
As experts in CIS, we offer a straight-forward tax return service which is designed to take away the hassle and ensure your submission is made correctly.  Doing so means any rebate you’re due will be processed and in your bank account as quickly as possible.
Before you begin, it’s important you know what expenses you’re entitled to claim for.

What can you claim for?

Tools, equipment, and clothing

You can claim back the tax on the cost of purchase, repair, or replacement of tools that you use for work. You can also claim tax relief on the expense of replacing, repairing, and cleaning specialist or protective clothing such as hard hats, protective boots, and overalls. Your uniform may be covered if it is ‘a set of specialised clothing that’s recognisable as identifying someone as having a particular occupation’, for example high visibility jackets and trousers are likely to be claimable expenses.

Capital expenses

Laptops, phones, and vehicles can be claimed as capital expenses as long as they were purchased for business use only. You can also claim for road tax, insurance, and fuel providing the vehicles is only used for business purposes.

Travel and subsistence

Your self-assessment tax return can also be used to claim back travel, mileage, and subsistence (i.e. meals and accommodation) while operating from a temporary workplace. For a workplace to be classed as ‘temporary’, it must be somewhere you’ve been assigned to work from for 24 months or fewer. If you do not know how long your contract will last, it will be considered as permanent after a period of 24 months.

Administrative costs

Other work-related expenses such as phone and stationary costs, public liability insurance and membership of any unions or professional bodies are also eligible for tax relief claims.

Managing your expenses

It is important to keep accurate records and copies of receipts for expense claims. It is valuable to get into the habit of keeping your records accurate and up-to-date. This will make it easier to complete your self-assessment tax return each year and receive the correct rebate you’re entitled to.

What if you’ve not incurred expenses?

If you haven’t incurred any business expenses or your expenses have been minimal, you can claim back up to £200 in tax by utilising your trading allowance. This is a £1,000 expense allowance available to self-employed individuals which would need to be claimed via your self-assessment tax return.

What to do next

Your tax return for 2019/20 can be submitted at any time between April 6th 2020 and January 31st 2021.  The sooner you do it, the sooner you’ll receive your rebate.

Let us help you with your self-assessment tax return

You can find out more about our comprehensive self-assessment tax return service or get in touch via 01244 684700.

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