Carpenter & Joiner

Nail your tax return with this guide for self-employed woodworkers.

Allowable Expenses

• Timber & Materials — Wood, sheet materials, fixings, adhesives, and finishing materials bought for each job — deductible as cost of goods.
• Power Tools & Hand Tools — Saws, routers, drills, planes, and hand tools — claim via Annual Investment Allowance for immediate relief.
• Workshop Costs — Workshop rental, electricity, and heating if you have a separate workspace.
• Vehicle Costs — Van or trailer running costs for transporting materials and tools to sites.
• Protective Equipment — Safety glasses, dust masks (P3 rating), hearing protection, and work boots.
• Insurance — Public liability and tools-in-transit insurance for self-employed tradespeople.

Tax Tips

• Bespoke furniture or joinery made to order is a service business — track materials per job against the invoice for each client.
• If you work on new builds, CIS will likely apply — get CIS-registered to avoid a 30% deduction rate.
• Workshop machinery (large planers, bandsaw, etc.) qualifies for the Annual Investment Allowance — claim the full cost immediately.
• HSE Working at Height regulations apply to carpenters working on roofing or high-level installations — compliance costs are deductible.

Frequently Asked Questions

Can I claim workshop machinery through capital allowances?

Yes. Large workshop machinery (planers, bandsaws, table saws) qualifies for the Annual Investment Allowance (AIA), which lets you deduct the full cost in the year of purchase rather than spreading it over several years.

How do I handle CIS as a carpenter?

Register with HMRC as a CIS subcontractor if you work on construction sites. Your contractor will deduct 20% from payments and pay this to HMRC. You reclaim any overpaid deductions on your Self Assessment return by declaring gross income and CIS deductions suffered.

Are protective equipment costs deductible?

Yes. Safety glasses, dust masks, hearing protection, and work boots worn exclusively on the job are fully deductible. General clothing (even if worn at work) is not deductible — only items that are genuinely protective equipment qualify.

Can I claim a dust extraction system for my workshop?

Yes. A dust extraction system is health and safety equipment required for safe woodworking — it qualifies for the Annual Investment Allowance and can be claimed in full in the year of purchase. Workshop safety equipment (dust collection, fire extinguishers, first aid kit) are all allowable business costs.