Builders Expenses Guide
It might come as a surprise what kind of things you can claim as expenses if you are a builder. However, what you can claim as a part of your expenses can depend on whether you are registered under the CIS scheme or whether you are paid through PAYE. From Capital Expenses to admin costs, check out our handy guide to what you can and what you can’t claim as a part of your expenses.
These tend to include more expensive items, such as new vehicles or computer equipment. As a CIS worker, if you have purchased these for business purposes (that means that you only use them for work purposes) then you can claim Capital Expenses on these items. Unfortunately, if you are a builder who is paid under PAYE then you can’t claim for these items.
Motor Vehicle Costs
Just like with Capital Expenses, as long as it is exclusively for business purposes then you can claim the tax back on expenses such as road tax, fuel, insurance and so on, as long as you are a CIS worker. Again, if you are paid under PAYE, you can’t claim back these costs.
Mileage costs are classed as expenses, as long as the miles are incurred travelling to a temporary place of work that is not your usual place of work. As a CIS worker, this means that you can claim mileage costs on the miles you have driven to work on any of your contracts. However, as a PAYE worker, these costs can only be claimed for journeys to a temporary place of work that is not your usual place of work.
Tools, Equipment and Uniform
These include items such as tools which you have either purchased or hired to do a particular job, protective clothing, laundry costs and so on. As a CIS worker, you can claim for the purchase and replacement of tools or equipment as a business expense. If you are a PAYE worker, you can claim for any tools or equipment that you have paid for – but only if the same or similar item was not available from your employer. Both CIS and PAYE workers may be able to claim uniform costs – check out our separate guide on uniforms for more details on those rules.
General Business Expenses
These include such expenses as are incurred in the running of your business, such as the costs incurred in maintaining a home office, public liability insurance, union fees or fees relating to a professional guild. As a CIS worker, these are items you can claim as expenses. For PAYE workers, you can claim expenses back for trade union fees and subscriptions as long as they relate to your specific job role.
Builder Admin Costs
CIS workers may find that they incur ‘admin’ costs as a part of their job, such as telephone costs relating to business calls or postage costs. If so, they can be claimed as ‘remaining admin costs’. PAYE workers do not usually incur these kinds of expenses and as a result cannot claim these expenses.
Travel and Subsistence Costs
These include the costs involved in travelling, eating and staying overnight for a temporary place of work. As a CIS worker, these are classed as claimable expenses. For these purposes, a place of work is classed as temporary as long as you are there for less than 24 months. It will be considered to be your permanent place of work if your contract lasts for longer than 24 months. As a PAYE worker who has one permanent place of work, these expenses cannot be claimed unless you are temporarily required to work in a different place.
We hope that this guide has answered all of your queries about builders’ expenses and what you can claim as either a CIS or PAYE worker but if you are still unsure, call DSR Tax Claims on 0115 795 0232 and let us answer your query. DSR Tax Claims are here to help you claim your maximum rebate, fast!