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Inwork expenses

Have a client who is working for a car dealer and has bought his own tools..

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we have a client who is working for a car delaer and has bought his own tools. Am just checking confirming that these are tax deductible.

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RLI
By lionofludesch
18th Jul 2019 09:03

The crucial piece of information missing is his employment status.

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By 0098087
18th Jul 2019 10:25

Sorry..PAYE

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By Wanderer
18th Jul 2019 11:30

Would an employed accountant be able to claim a deduction for a calculator they have purchased themselves?

OP you have to consider if the purchase satisfies the wholly, exclusively and necessarily in the performance test.

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Replying to Wanderer:
By 0098087
18th Jul 2019 11:31

well being tools and if they were left at the premises I believe they would

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By Wanderer
18th Jul 2019 11:35

That possibly covers W+E but does it cover N?

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By gainsborough
18th Jul 2019 11:39

Yes, eligible for capital allowances if life of tools >2 years and necessarily provided for use in the performance of duties, which should be the case here.

EDIT: Allowances can be apportioned if there is private use.

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Replying to gainsborough:
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By Tax Dragon
18th Jul 2019 11:49

EIM36540

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Replying to Tax Dragon:
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By gainsborough
18th Jul 2019 11:58

Absolutely - some proof that the car dealer was not willing to pay for the tools would be useful in proving the necessary test.

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Replying to gainsborough:
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By Tax Dragon
18th Jul 2019 12:07

It wouldn't harm the position if all the other mechanics had to provide their own tools (except, what a crap employer).

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Hallerud at Easter
By DJKL
18th Jul 2019 11:43

It certainly has been/was fairly common for mechanics to have their own tool kits which they take with them from employment to employment, my concern re tax deduction would be the W,E & N, especially the N.

For instance I doubt the chaps at say Kwik Fit of Halfords Garages use their own kit whereas at "Bob's under the Arches" a lot of the smaller tools (not the lifts/hoists/compressors etc) will invariably belong to employees Tom,Dick or Harry.

You can often see this if you try purchasing decent quality secondhand tools on say E Bay, retired mechanics often selling these. (I have an ever growing collection of mechanics tools as each particular job often requires something not already owned- a press is the next planned addition)

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Replying to DJKL:
RLI
By lionofludesch
18th Jul 2019 13:35

DJKL wrote:

It certainly has been/was fairly common for mechanics to have their own tool kits which they take with them from employment to employment, my concern re tax deduction would be the W,E & N, especially the N.

There are trades where it is common for employees to provide their own small tools. You need to establish whether this is required by the terms of the contract.

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Replying to DJKL:
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By JoF
18th Jul 2019 19:30

Its still commonplace in the garages local to me, some of which are clients/a couple my Dad has been involved in as a business angel etc. The mechanics are like children in a sweetshop when the Snap-on van appears.

Similar to many chef's having to purchase their own knives.

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Replying to JoF:
RLI
By lionofludesch
18th Jul 2019 19:53

JoF wrote:

Similar to many chefs having to purchase their own knives.

Great example. Chefs would be appalled if asked to use their employer's knives. Any self-respecting chef has his own.

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By Wanderer
18th Jul 2019 11:45

The general rule for employees: expenses: each and every holder: Ricketts v Colquhoun

Quote:
The restriction of deductions under section 336 ITEPA 2003 to those that each and every holder of the employment would have to incur is clearly expressed in the judgement of Lord Blanesburgh in Ricketts v Colquhoun (10TC118) on page 135:

“The language of the rule points to the expenses with which it is concerned asbeing confined to those which each and every occupant of the particular office is necessarily obliged to incur in the performance of its duties, to expenses imposed upon each holder ‘ex necessitate’ of his office, and to such expenses only. It says:- ‘if theholder of an office’ - the words be it observed are not ‘if any holder of an office’……the terms employed are strictly, and, I cannot doubt, purposely, not personal but objective. The deductible expenses do not extend to those which the holder has to incur mainly, and, it may be, only because of circumstances in relation to his office which are personal to himself or are the result of his own volition.”

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Routemaster image
By tom123
18th Jul 2019 13:01

Our staff (not motor trade, but similar) are expected to provide their own standard hand tools - which stay on our premises, usually in locked trolleys.

Specialised tooling, or air powered tools, are provided by the company.

Fairly standard in all the manufacturers I have worked for.

(ie specialised hand built environments rather than say Honda)

Not sure if any of the guys claim for these themselves however.

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Routemaster image
By tom123
18th Jul 2019 13:02

Worth pointing out that if you provide your own, there is no 'sharing' going on, and you can choose whatever quality level you like, rather than having to use the cheap ones that employer may have bought.

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Replying to tom123:
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By Tax Dragon
18th Jul 2019 13:58

But then it's not necessary...

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Replying to Tax Dragon:
RLI
By lionofludesch
18th Jul 2019 15:25

What if the employer doesn't provide any hand tools ?

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Replying to tom123:
By SteLacca
18th Jul 2019 15:13

I'm pretty sure the Special Commisioners back in the old S.198 days determined that buying something better than that which was supplied failed the necessary test, on the grounds that it was simply desirable rather than necessary.

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Replying to SteLacca:
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By Tax Dragon
18th Jul 2019 15:31

Ooh... how do I apply to be a Special Commissioner back in the old S.198 days? Sounds like I could make some right decisions! :-)

(It does leave me wondering... how did that get further than the Generals?! In fact, how did it get further than one letter in response to an enquiry? Never mind how much was being spent on the tools [erm, how much was being spent on the tools??], it's a complete nonstarter, isn't it?)

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RLI
By lionofludesch
18th Jul 2019 17:56

As HMRC offer employees Flat Rate expenses for "Tools and Special Clothing", you'd think they'd accept that some employees provide their own tools.

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By Caber Feidh
25th Jul 2019 15:54

Like DJKL I have accumulated quite a collection of tools covering my many DIY activities and I have always chosen good/best quality tools. I expect my approach is the same as that of employees who buy some of their own - not only is the "feel" or balance often important but I need to be confident that the tool will not fail in some way that threatens my health or even my life. Even a broken spanner can result in the loss of significant amounts of flesh from the hand holding it.

Early in my scientific career (nearly fifty years ago) I was working alone in my laboratory when a defect in the connectors to a measuring instrument resulted in my receiving a 2,800V shock between fingers on my right and left hands - roughly the same effect as a defibrillator. As soon as I had checked my pulse to confirm that I was still alive I sucked my burned fingers and discovered that cooked human does taste like roast pork.

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