Equipment expenses while on inside IR35 contract

[Nut]

Hi,
I have a question regarding contracts whilst working inside ir35. Can you claim for equipment you need to purchase that is used wholly and exclusively for work purposes through your self assesment? Similar to how you can if you’re self employed or as you do through ltdco?

I’ve found on inside contracts that they take the government line ‘employee for tax purposes only’ to heart and you’re still expected to supply your own equipment etc.

for example my current one, I am signed to the brolly who has the contract with the agency, who then has a contract with a client who I am then working in turn on a protect for the clients client. Everyone in that chain feels it’s someone else’s responsibility to provide equipment etc (ie, me).

In this instance then if I had to buy for example a work laptop can I put that through as an expense on the SA? Or am I just getting shafted there as well, being Inside?

[eek]

Pass I started at Claim tax relief for your job expenses: Buying other equipment - GOV.UK (www.gov.uk) but then it falls apart as it references Annual investment allowance which then makes no reference to employment.

[jamesbrown]

No, you can’t, just like any other employee cannot. Other than the 5% allowance for inside contracts operated via a Ltd company under the old Chapter 8 rules (not applicable to you), you’re basically an employee (of the umbrella in your case), you are not trading.

[Nut]

Pass I started at Claim tax relief for your job expenses: Buying other equipment - GOV.UK (www.gov.uk) but then it falls apart as it references Annual investment allowance which then makes no reference to employment.

Interesting. That page does sort of indicate you can make an expense for that type of thing.

Considering on the SA there is just an individual expenses total box and not something where you can add line items of what you've spent. I wonder if you just add it and keep records/receipts incase they come knocking?

[eek]

Interesting. That page does sort of indicate you can make an expense for that type of thing.

Considering on the SA there is just an individual expenses total box and not something where you can add line items of what you've spent. I wonder if you just add it and keep records/receipts incase they come knocking?

That's the thing - it looks like you qualify and then every other reference to it relates to a business (which you clearly are no longer).
I actually suspect that were you to attempt the claim it is going to be rejected by trying to find a definitive "No" on HMRC's website / manual is proving way more difficult than I hoped it would be.

[jamesbrown]

You’re in no different position than any other employee. If you are required to work from home (no option to work onsite) and the equipment is not supplied to you but essential for your duties (unlikely), there is a form to obtain tax relief on equipment costs that you have incurred personally (P87), but I highly doubt a laptop would qualify in this situation.

[jamesbrown]

That's the thing - it looks like you qualify and then every other reference to it relates to a business (which you clearly are no longer).
I actually suspect that were you to attempt the claim it is going to be rejected by trying to find a definitive "No" on HMRC's website / manual is proving way more difficult than I hoped it would be.

The exact rules will be somewhere in an EIM in the Employment Income Manual.

[northernladuk]

How is it wholly and exclusively if you are inside? You are going to buy a laptop as you'd rather use yours than the one they provide?

[eek]

The exact rules will be somewhere in an EIM in the Employment Income Manual.

Suspect it's at EIM36730 - Employment Income Manual - HMRC internal manual - GOV.UK (www.gov.uk) - as you can see it gets complex quickly.

[eek]

How is it wholly and exclusively if you are inside? You are going to buy a laptop as you'd rather use yours than the one they provide?

Once again - read the first post, the end client is NOT giving him any laptop and are expecting him to use his own.