My 16yo son has just been accepted as an electricians apprentice, he’ll be employed by the firm, on the government scheme attending college one day a week.

He’ll use their tools initially, but the expectation is that over the four years he’ll buy his own tools. This sounds wise as at the end, when qualified, he’ll be equipped to fend for himself if he opts to leave.

So, as an employee, is there any legit way he can claim the VAT back for tools (driving lessons). Could he set himself up as self employed whilst an apprentice just to claim the VAT back with no actual self employed income?

Any other legit options / loopholes?

Many thanks.

Just needs to keep receipts and accurate records then file a tax rebate claim

Comes under uniforms and tools

– what’s the random driving lessons comment in brackets about ? Your not trying to class that as tools for work ?

No, but ensure he claims his tax rebates – maybe worth waiting if he’s not yet earning enough.

In short, no. If it was possible for individuals not making a taxable supply to simply register for VAT and recover input tax, everyone would be doing it.

As driving will be essential to his role I wondered if he could claim the VAT back from his lessons.

I’ve found a website that says he can claim a tax rebate as an apprentice for tools, but it’s not an official .gov website.

https://www.taxrebateservices.co.uk/tax-guides/apprentice-mechanics

Some mixed opinions above, anyone else have any recent experience of this?

So, as an employee, is there any legit way he can claim the VAT back for tools (driving lessons). Could he set himself up as self employed whilst an apprentice just to claim the VAT back with no actual self employed income?

VAT, no.
Income tax offset, maybe as self employed. You can be self employed and employed at the same time.
However you can’t spend more than you earn, and of course it’s only reducing his income tax burden at the rate he pays it.
It may be better to look at buying a chunk of kit as and when he graduates. He could in year 1 as self employed joiner buy a set of good tools, and of course he would then be earning better money to afford and higher income tax rate.
You can’t reduce NI.

This seems to say he can claim £60 a year for uniform washing.

https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

No mention of tool purchasing.

Might be simpler to just use the £1000 trading allowance.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

https://www.gov.uk/tax-relief-for-employees/uniforms-work-clothing-and-tools

Basically it’s into completing a self assessment.

It’s not flat rate apply. It’s to be backed up by receipts.

Doubt it applies to driving lessons.

My son registered as a sole trader when he left university. His industry and job is primarily freelance, short term contracts, although he does work PAYE. He uses a self assessment tax return to claim his expenses back by offsetting his tax. Not sure if that’s the correct term.

Tools, equipment, travel and accommodation, etc. All are deducted from his earnings prior to tax being paid.

Two completely separate issues here which some posters seem to be confusing.

VAT – he would need to be making taxable supplies in order to register for VAT and claim this back.

Expenses – buying tools – he can claim for this against his income meaning that he will get some tax back from HMRC.
The expenses need to be “wholly, exclusively and necessarily” for the purpose of the trade. Driving lessons are not something I would consider falls into this description.

Can he not have his employer buy them on his behalf? They can claim the VAT back.

Driving lessons definitely not.

Yes I asked HMRC about buying tools for a property business, landlording, they told me the tools had to be wholly and exclusively for the business use.

HMRC are v helpful when you call them.

Best wishes to your son, hope it works out.

Any tools used at work are the employers responsibility. They have a duty to provide ALL necessary tools and to ensure that the tools are fit for purpose. If using tools not provided by the employer the employer MUST be informed as it is still their responsibility to ensure that they are fit for purpose. H&S legislation more or less dictates this.
In a business individuals normally have their own tool kit that they are responsible for but the employer ultimately owns it.
If he is self employed then tools might be claimed against income tax on the tax form. I don’t know whether this is possible on PAYE. A lot of trades do some work PAYE and some self employed.
Edit / PS: well done and hope he enjoys the job. Good electricians are often in short supply.

Any tools used at work are the employers responsibility. They have a duty to provide ALL necessary tools and to ensure that the tools are fit for purpose. If using tools not provided by the employer the employer MUST be informed as it is still their responsibility to ensure that they are fit for purpose. H&S legislation more or less dictates this.

Nonsense – are you getting confused with PPE?

And it’s the user’s responsibility to make sure the tool is fit for use before starting any task

No I’m not getting confused. Pre use checks etc. and even tool ordering may be user responsibility but adequate tools and training in how to use them is up to the employer, with an apprentice under 18 it is likely totally employers responsibility.
Unless you have a contract stating otherwise (like being a compulsory car user) then you would normally expect and employers to provide tools.
All the trades on our site have their own toolset that they are expected to take care of but they are ultimately owned by the company.
Note on a building site a significant proportion on the trades will be self employed contractors expected to bring tools. There is still responsibility of the site management to ensure that contractors are properly trained and equipped.
Edit: just remembered the name of the regs. Tools come under PUWER (provision and use of work equipment regulations)

At my lads garage all apprentices and mechanics have to buy their own tools, basic ones might be provided by the garage buy you’re definitely expected to buy your own over a period of time

Claim a capital allowance on self-assessment; Annual Investment Allowance would fit as Plant and Machinery. You can use items outside work but only claim the work proportion

PUWER has nothing to do with who supplies the tools.

only ensuring that the tools used are fit for purpose and the people using them are trained to use them.

Thats on the employer to record.

Nonsense – are you getting confused with PPE?

And it’s the user’s responsibility to make sure the tool is fit for use before starting any task

The law disagrees with you.

PUWER 5.—(1) Every employer shall ensure that work equipment is maintained in an efficient state, in efficient working order and in good repair.

In the context of PUWER work equipmentb is anything from basic handtools to massive items of machinery.

The user might be responsible for some things (like using the equipment according to procedures and training) but overall the employer is responsible for making sure tools are inspected, maintained etc. Also the times that somebody hurts themselves with work equipment and the employer has fulfilled all their PUWER duties will be rare.

PUWER has nothing to do with who supplies the tools.

Agree but not sure how any (responsible) employer could allow employees to supply their own tools and comply with PUWER? It could in principle be done but very hard to show you know the providence of what’s being used and it’s being inspected / maintained / repaired / replaced.

It’s still not the law for the employer to provide tools, only PPE

Unless specifically contracted otherwise it would be assumed that the employer provided the tools particularly as they are responsible for the correct tools being used. The employer doesn’t have to own the tools (they can be hired) but as implied by the Provision part of PUWER they would need to be contractually clear if they are not the providing.
As above this is less clear with trades where they are often theoretically self employed contractors even though they always work for the same person.

Ah, apprentices buying their own tools, do the snap-on vans still circle round them hoping they’ll drop a months wage on a ratchet set 😂

but as implied by the Provision part of PUWER

Have you read the regs or just the title ?

There is no legislation saying an employed must supply tools.

An answer from an employment solicitor;
“There is nothing in law that states an employer should provide the necessary tools for an employee to perform their job. However, if the employer expects a job to be performed they should consider supplying the employee with the necessary tools, otherwise if the employee is unable to do the work in question then any action by the employer could be deemed unfair. Saying that, if a contract or a policy specifically states that an employee is expected to provide their own tools then they can be expected to do that.”

I am a plumber who has worked in an employed and self employed capacity. In both instances I was expected to supply my own tools.
A friend of mine is an electrician who is employed. He supplies his own tools.
A builder who I do work for has an apprentice who supplies his own tools.

Your lad might find it cheaper to buy tools from abroad! Purchases from abroad, up to a value of £130 or so, don’t attract VAT or customs duty (though a penny over, and they do! so check the figure!), and the exporters will knock off the domestic VAT for exports, usually 20%. Some companies won’t send stuff to the UK under the value of £130 or so, but many will, and even goods worth more often creep through…
Dictum.com are a massive german tool co and will send any value of goods to the UK, and the postage is usually minimal.
Hyvlar.se too…
or direct from America…