What is a tool allowance?

If you have to purchase tools for work use, and are not reimbursed by your employer, you should be eligible to claim tax relief on your purchases.

This is known as a tool tax allowance and is claimed through your tax code.

If you have receipts you can get more back

Having receipts for your tool purchases means you can normally make a claim for the actual cost of the tools purchased. In most cases you get a lot more back by claiming this way instead of claiming a tool allowance through your tax code.

You can claim back in the region of 20% of the value of your tools. You can use our tool tax back calculator to work out the value of your claim.

Protective clothing allowance

If you wear and wash your own protective clothing you can claim back an allowance for this in addition to your tool allowance.

Claim your tool allowance if you don’t have receipts

Tool allowance tax relief can be claimed through your tax code and you don’t need receipts to be able to claim. The amount you can claim depends on the industry you work in, and is agreed by the tax office.

Claiming a tool allowance is ideal if you can’t provide receipts for the tools you have bought. It’s worth remembering that your tool provider can usually give you a statement that can be used instead of all the individual receipts.