Does Making A Tool Tax Rebate Claim Affect My Employer?

Does making a tool tax rebate claim affect my employer?

It is standard practice for professionals like car mechanics and vehicle technicians in the  motor industry to provide their own tools and equipment for work use.

Making a claim should not affect your employer because a claim is specifically made between you as an individual tax payer and HMRC. Any tax rebate that may be due is refunded by HMRC from the tax you pay through your employment income and is not paid by your employer.

In some cases you may be asked to provide an employer declaration which confirms that your  employer does not reimburse you for the cost of tools and toolboxes purchased to perform  your work duties.

An employer declaration only needs your employer to sign a simple   statement to confirm that you need to buy your own tools to perform your job and that you are not reimbursed.

tool tax rebate claim is possible by claiming back capital allowances on the cost of eligible  tools and tool storage.

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…