Can a Mechanic claim tax relief on software agreements?

Having the current automotive diagnostic software is essential for every car mechanic who wants to stay competitive. Many systems require the additional purchase of a software agreement in order to access all the available tools and/or have permission to use at your workplace.

If you buy these software agreements yourself, without any reimbursement from your employer, then they can be included in your mechanics’ tax relief claim. You just need the purchase order from your tool dealer as supporting evidence.

We have noticed that lots of mechanics are missing out on this tax relief because it is not widely known about. You don’t have to make a separate claim, we simply include it in your usual mechanics’ tool tax rebate claim.

Software agreement finance relief

Most software agreements are bought from a tool provider like MAC tools or Snap on tools who sell the product through a finance agreement. If this is the case for you we can reclaim tax relief on the interest part of your finance agreement as well.

How much is a mechanics’ tax relief claim worth?

If you haven’t claimed your mechanics’ tax relief before, then you might be surprised to learn that it is worth approximately 18% of the total amount you spent on tools, plus other possible expenses like washing of work overalls and membership fees into the Institute of Motor Industry. Our average initial claim for clients in your trade is worth over £900.

Do I need receipts for everything?

Another confusing element about the tax system is that each work expense or allowance seems to have its own requirements for supporting evidence. For actual purchases, you will need either a receipt or activity report from your tool provider. For other things, you need to read the small print.

The best way to make sure that you don’t miss out on any of your tax relief entitlement and that you submit a 100% accurate form is to use our trusted and professional mechanics tax rebate service with five star reviews.


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Use the tool tax refund calculator to find out how much you can reclaim. Just enter the total of how much you’ve spent on tools and the calculator will let you know how much you can claim.

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