Will I Automatically Get A Tool Tax Rebate?

Will I automatically get a tool tax rebate?

No, you will not automatically get a tool tax rebate.

The government has set up a system of tax reliefs and allowances for work expenses to make the system fairer for taxpayers. And they do have lots of the necessary information about your income, tax payments and NICs already.

But they don’t have all the facts. They don’t know that you replaced your overalls or bought a new expensive MAC tools toolbox at your own expense, unless you tell them.

The tool tax rebate process

The whole procedure is based on the idea of each taxpayer’s application for a tax rebate being treated individually.

A claim should be made in writing and may include the completion of a self assessment tax return which is normally submitted online.

Your financial situation is different to all of your colleagues, even if you are doing the same job, buying the same tools and paying the same rate of tax.

Other factors also influence your tax rebate claim, so it must be decided on a case-by-case basis. This makes an automatic tool tax rebate impossible.

Basically, submitting a tax rebate claim is the taxpayers’ role in these particular HRMC procedures. If you do not submit a tool tax rebate claim, you will never get your tax overspend paid back to you.

Tool tax rebate claim types

Capital allowances

Claiming for the actual cost of your tools is possible by claiming capital allowances. Evidence must be provided showing the date of purchase, item description and cost.

Flat rate allowances

A flat rate expenses is available without the need for receipts. Although there are flat rate expense amounts for commonly claimed expenses in particular industry sectors which carry less of a burden of evidence, these also have to be claimed for.

You can include other work expenses with your claim like the cleaning of workwear and the cost of protective clothing (receipts needed).

Our tool tax rebate claiming service

Our tool tax specialists are here when you are ready to start your claim. With our expertise and knowledge we secure an average tool tax rebate worth more than £900!

To get in touch complete our online contact form below, email support@taxrebateservices.co.uk or call 01228 520477.

Written by: Tax Rebate Services Editorial Team
Reviewed by: Tony Shanks, qualified Taxation Technician (ATT)

This page provides general information, not personalised tax advice. Tax rules and allowances change — for help with your own circumstances, speak to a qualified adviser or HMRC.

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…