Can I claim tax back on tools bought for work?

Yes, you can claim the tax back on tools you have bought for work.

But why? Because they are considered an essential work expense by HMRC. This means that the Tax Office recognises that you need these tools in order to do your job and that you are having to pay for them out of your own pocket.

The rules apply to everyone including mechanics that are employed by a garage, franchised dealership, fast fit centre and those that are self employed. You are eligible as a part time or full time PAYE worker, as long as you are paying income tax for the year in which you are claiming a tax rebate.

It doesn’t matter if you have worked for different employers, or currently work for more than one employer, you can still make a tool tax back claim for the tools you’ve bought for work.

What tools can I claim tax back for?

You can claim for “repairing or replacing small tools you need to do your job” and for larger purchases, like toolboxes. There are separate procedures to follow for each type of claim.

Unfortunately, the tax code tool tax allowance that HMRC allows usually does not cover the actual cost of buying tools or pieces of equipment.

The good news is you can claim for the actual value of what you have bought as long as you have the evidence to prove it by making a claim for capital allowances.

It’s worth noting that if your employer reimburses you for any of your purchases, you cannot include them in your claim.

Can I claim for anything else with my tool tax back claim?

As an extra bonus you can claim more tax back for expenses like washing and buying your own protective clothing, the interest paid on any finance agreements (relating to your tools) and for business mileage.

You know you spend at least a portion of your hard earned wages on tools, equipment and protective clothing. And many mechanics and other trades people don’t even know that you can claim tax back for the tools you buy for work.

By the time you add up all the replacement tools, never mind any bigger purchases, that you buy each financial year, it really is important to make the most of the work expenses tax allowances that are available to you.

Reviewed by Tony Shanks, Operations Director Tax Rebate Services and member of Association of Tax Technicians (ATT)
Tool tax refund calculator

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.

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Mechanics tax rebates
If you do not have receipts your ‘Flat Rate’ claim can be backdated for 4 tax years and is worth £120 per year…
A tools tax rebate is available to all mechanics who buy the tools they use for work themselves, when they are not reimbursed by their employer…
£900 is the average tax refund amount we get for our clients that are mechanics making an initial claim…
You have to play your part in the process by submitting a tax rebate form or using the correct section of the self assessment process…
Tool tax rebates

If you are paid under PAYE, tools are tax deductible because you can claim Capital Allowances which gives you tax relief on what you have bought…

The tax relief regulations are very specific about eligibility criteria. And the Capital Allowances rules are not exclusively for self employed taxpayers…

If you are claiming back capital allowances for the actual cost of your tools there is no HMRC limit to how far back you can claim a tool tax rebate…
The amount you get for a tool tax rebate is dependent on several factors, including: how much you earn, how much tax you pay, how much you have spent on tools, what evidence you have to support your claim…
Types of tool tax rebate
Yes, you can claim the tax back on tools you have bought for work…
These can be actual items, like machinery, vehicles or equipment; or intangible things, like patents, or intellectual property…
The government has set up a system of tax reliefs and allowances for work expenses to make the system fairer for taxpayers…

HMRC’s rules state that capital allowances should be claimed within your self assessment tax return (Section 3i and ii, CAA 2001)…

Tool tax rebates other expenses and tax returns
Yes, you can claim a tool tax rebate and a uniform rebate all at the same time…
Yes, if you have to complete a tax return you must enter your tool expenses on your return…
Yes, you should submit a tax refund claim for tools, fuel and anything else that applies to you all at the same time…
Yes, even though you may now be self employed, you can still potentially claim tax relief for when you were employed under PAYE…