On this article we have a look at the UK woodworking sector, and at how carpenters, joiners, cupboard makers and wooden machinists can declare tax reduction if they’re on PAYE. We’ll have a look at when, why and the way a lot could be claimed, earlier than displaying how 5 minutes’ of your time right this moment might convey a pleasant fats cheque simply in time for Christmas.
Who can declare?
The tax rebate could be claimed by any woodworking worker on PAYE, whether or not you are classed as a carpenter, a joiner, a cupboard maker or a machinist. All PAYE staff who present their very own small instruments and tools for work; or put on a piece uniform; or each, can declare this tax refund.
How does it work?
The Earnings Tax Act 2003 permits staff on PAYE to say reduction towards the bills they incur throughout the office. As long as the prices involved have been ‘wholly, completely and essentially’ incurred, they’re normally tax-deductible.
As soon as the reduction is granted, and utilized, it successfully reduces your taxable revenue. In different phrases, you pay tax on much less of your revenue.
So how a lot tax reduction can I declare?
In case you’re anticipated to offer your individual instruments for work, put on a uniform, or each, you might declare as much as £140 per yr in reduction (no matter your job title or the precise sort of woodwork you perform). Additionally, it would not matter how a lot you may have truly spent on shopping for instruments or washing laundry – and there isn’t any want to offer receipts as a result of the tax reduction is about at a pre-determined price.
It is attainable to backdate the declare for as much as six years too. You probably have been within the commerce since earlier than April 2004, claiming this tax reduction may very well be price price £740 – and as soon as utilized, HMRC pays again the tax reduction for all of the earlier years – within the type of a £157 money refund.
How lengthy does it take?
We’ll start negotiating your refund with the tax authorities as quickly as we obtain your utility. Tax reduction is normally utilized inside 15 working days, although time scales can fluctuate a bit relying on tax workplace delays navigate to this website.
How do I declare this tax reduction?
In case you want to declare tax reduction as a carpenter or joiner, act quick. The deadline for PAYE claims (January 31) will quickly be upon us, and after this date, you may lose the power to say for the 2004-5 tax yr.
To assert a flat-rate tax rebate towards any instruments and tools it’s important to present at work, and/or any uniform you put on, try our Tax Aid on Bills web page now. It takes simply a few minutes to use, and may very well be price a small fortune.
What is the threat?
This service is obtainable on a no-refund, no-fee foundation. Due to this, you don’t have anything to lose by making use of.