Tool Tax Rebate

If you are a PAYE employee in the motor, engineering or similar industries, it often means you have to buy your own tools and equipment in order to carry out your duties of work. HMRC has tax relief guidelines that say you may be eligible to claim back a tax rebate for the cost and maintenance of any tools you have paid for yourself.

The cost of buying your own tools and equipment can add up over the years. Typically, you can claim a refund of around 20% of the full cost on any tool purchased to carry out your job as long as you have not been fully reimbursed for your purchases from your current or previous employers and you have kept receipts. If receipts are not kept you can still claim however this is restricted to a flat rate allowance dictated by HMRC.

 

To find out more about claiming a rebate get in touch with us today – we work on no refund no fee basis, so you have nothing to lose…

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For more details apply online or call 0333 240 6122

Am I eligible for a tool tax rebate?

 

In order for you to be eligible to put forward a claim for a tool tax refund, you must:

 

  • Have paid for the tools yourself – and have receipts
  • Be able to demonstrate that the tools are necessary for you to do your job
  • Have earned enough to pay income tax
  • Have not been reimbursed in full for the tools by your employer

 

If you meet this criteria then get in touch with us today and we will help you get the tax refund you are entitled to.

 

If you are unsure whether you have a claim or not then get in touch and our tax experts will be able to put your mind at rest – we work on a no refund, no fee basis so there’s no harm in finding out for sure whether you are entitled to a rebate.

Trades and professions we have helped get a tax rebate

 

Any job which requires tools in order to do could lead to a tool tax rebate. The list of trades, professions and occupations we have so far helped to reclaim money from the tax man is long, with some of the most common jobs being:

 

  • Mechanics – mostly for their own tools and tool boxes
  • Electricians – all tools
  • Joiners/carpenters – all tools
  • Chefs – mostly for knives
  • Hairdressers – mostly for scissors

 

If you work in these professions, or any other that requires you to buy and maintain your own tools or equipment then you could be entitled to make a claim for a tax refund.

For more details apply online or call 0333 240 6122

Tool tax rebate FAQs

 

We have answered some of the most common questions we receive about tool tax rebates below – if you have any other questions or would like to know more about how to make a claim for a refund, get in touch with us today.

 

What if I have bought my tools on finance?

 

If you have spread the cost of your tools with a finance agreement with a tool provider then you may be able to claim a refund on the interest you pay as part of your finance deal. For example, if you are a mechanic and have a tool box from Snap or MAC then we just need the to see the finance agreement and we can get you tax relief on the interest.

 

Do I have to be self-employed to qualify?

 

No, being self-employed isn’t necessary to be eligible for a tool tax rebate. You could still be eligible if you are employed and on the payroll i.e. pay tax via PAYE.

 

How long can I claim back for?

 

As with all tax refund claims, you are able to claim for the past four years. However, if you have receipts that go back further for tools that are still in use you may also be able to include them in your claim.

 

How much tax could I claim back for tools?

 

The tool tax allowance is usually worth up to £120 per year, which is an agreed upon amount for particular trades that can be claimed without the need for receipts. So if you haven’t claimed the tool tax allowance in the past four years you could be due a rebate of £480.

 

If you have paid more than the tool tax allowance during the tax year and have receipts to prove it then you can also make what is known as a capital allowances claim. The amount of tax relief you are entitled to here is about 18% of the total cost of the tools – which can add up to quite a lot!

For more details apply online or call 0333 240 6122