Can I claim for tools bought on finance?
It’s common practice for mechanics and other trades people to buy tools and toolboxes through a finance agreement.
Tool providers provide finance agreements so the cost of expensive tools and tool storage can be spread over a period of time.
For the purposes of claiming a tool tax rebate on the cost of an item purchased through a finance agreement a claim can be made in the tax year in which the item is initially purchased.
The tax office class the purchase being made in the tax year the agreement is signed and not when the item is fully paid off. You don’t need to wait until the item is paid off in full through the finance agreement before making a tool tax rebate capital allowances claim.
Tool finance agreement interest tax relief
In addition to a claim for capital allowances on the cost of an item tax relief is available on the interest paid through a finance agreement. This is a separate claim to capital allowances and can be made at the same time or after your tool and toolbox tax rebate claim.
It doesn’t matter what your job is if you buy tools for work you can claim a tax rebate. Just enter the total of how much you’ve spent on tools to get your tax rebate estimate.