Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

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

Options
  • 23-12-2020 11:59am
    #1
    tonydude
    Registered Users Posts: 1,672 ✭✭✭


    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


Comments

  • Options
    #2
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭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


  • Options
    #3
    Will Yam
    Registered Users Posts: 671 ✭✭✭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.


  • Options
    #4
    RandomViewer
    Registered Users Posts: 6,191 ✭✭✭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,


  • Options
    #5
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭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.


  • Options
    #6
    Maximus47
    Registered Users Posts: 15 ✭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.


  • Advertisement
  • Options
    #7
    Taxuser1
    Registered Users Posts: 1,691 ✭✭✭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.


  • Options
    #8
    tonydude
    Registered Users Posts: 1,672 ✭✭✭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


  • Options
    #9
    Will Yam
    Registered Users Posts: 671 ✭✭✭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.


  • Options
    #10
    Maximus47
    Registered Users Posts: 15 ✭Maximus47


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


  • Options
    #11
    Stratvs
    Registered Users Posts: 958 ✭✭✭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.


  • Advertisement
  • Options
    #12
    tonydude
    Registered Users Posts: 1,672 ✭✭✭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


  • Options
    #13
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭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?


  • Options
    #14
    tonydude
    Registered Users Posts: 1,672 ✭✭✭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


Advertisement