Claiming vat back as a Paye Carpenter, is it possible?

tonydude

Hi look for some help , im a Paye Carpenter and am looking to get some tools for the job, is it possible to claim back the vat in January or must I be a sole trader. Thanks

gerrybbadd

tonydude wrote: »

Hi look for some help , im a Paye Carpenter and am looking to get some tools for the job, is it possible to claim back the vat in January or must I be a sole trader. Thanks

You can only claim VAT back if you are registered for VAT. You can't retrospectively register either unfortunately. So you could only claim VAT back on the tools if you are already registered for VAT

You can claim Flat Rate Expenses in the carpentry trade, 220 per year. That adds 220 to your standard rate cut off point, and 20% of 220 to your tax credits

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/documents/flat-rate-expenses.pdf

Will Yam

But remember if you are registered for vat, you must charge vat to all your customers.

And also if your annual turnover exceeds, or is likely to exceed, 37,500 you must register for vat. If you don’t you will be liable to pay over all vat on your sales, whether you charges it or not.

RandomViewer

tonydude wrote: »

Hi look for some help , im a Paye Carpenter and am looking to get some tools for the job, is it possible to claim back the vat in January or must I be a sole trader. Thanks

Unless you get your employer to claim the Vat back for you,

relax carry on

RandomViewer wrote: »

Unless you get your employer to claim the Vat back for you,

Which the employer could only do if they bought the tools and continue to own tools.

Maximus47

Yes the employer is entitled to supply tools to the employee and not incur benefit in kind but be careful of salary sacrifice rules.

Taxuser1

tonydude wrote: »

Hi look for some help , im a Paye Carpenter and am looking to get some tools for the job, is it possible to claim back the vat in January or must I be a sole trader. Thanks

No. Not unless you’re self employed (A taxable person) and register for VAT in your own name (an accountable person). PAYE workers are neither. Your employer is/are though so as in the other answers above, get them to buy the tools of their trade which you then use ? Or get them to reimburse you for your expenses incurred on behalf their trade.

tonydude

So can I claim back the 220 credits as a carpenter as a Paye at the end of year or do I have to be vat registered to claim it back. Thxs

Will Yam

tonydude wrote: »

So can I claim back the 220 credits as a carpenter as a Paye at the end of year or do I have to be vat registered to claim it back. Thxs

If you are an employee VAT has nothing to do with it.

If you incur an expense which is wholly, necessarily and exclusively for the purposes of your employment (and your employer does not reimburse you), you are entitled to claim the amount paid out as an expense.

What happens is when you make a tax return you enter the figure in the appropriate box, deduct the amount from your income and you are taxed on the balance.

Maximus47

You need to be registered as self employed and also registered for the purposes of vat.

Stratvs

tonydude wrote: »

So can I claim back the 220 credits as a carpenter as a Paye at the end of year

Also it's not tax credit of €220 but a flat rate expense of €220.
So €220 comes off the top slice of your income before tax.
If you have exposure to tax at 40% then it's worth €220 @ 40% = €88.
If you pay tax only at 20% then it's worth €220 @ 20% = €44.

As others have said VAT is not relevant to PAYE Flat Rate Expenses.

tonydude

Will Yam wrote: »

If you are an employee VAT has nothing to do with it.

If you incur an expense which is wholly, necessarily and exclusively for the purposes of your employment (and your employer does not reimburse you), you are entitled to claim the amount paid out as an expense.

What happens is when you make a tax return you enter the figure in the appropriate box, deduct the amount from your income and you are taxed on the balance.

I've purchased about 1500 worth of tools in 2020 , so can I give them my receipt s of those tools and make use of this 220 flat expense. Thxs

relax carry on

tonydude wrote: »

I've purchased about 1500 worth of tools in 2020 , so can I give them my receipt s of those tools and make use of this 220 flat expense. Thxs

That's the only whole about "wholly, necessarily and exclusively for the purposes of your employment". How do you prove those tools are just for your job and will not be used for anything else. If you are a PAYE employee, why are you providing your own tools to carry out your employers work? Shouldn't your employer be providing you with tools for you to carry out the jobs they require you to do?

tonydude

relax carry on wrote: »

That's the only whole about "wholly, necessarily and exclusively for the purposes of your employment". How do you prove those tools are just for your job and will not be used for anything else. If you are a PAYE employee, why are you providing your own tools to carry out your employers work? Shouldn't your employer be providing you with tools for you to carry out the jobs they require you to do?

9 out of 10 chippies have to supply their own tools