Can I claim a tax refund on tools and fuel at the same time?

Yes, you should submit a tax refund claim for tools, fuel and anything else that applies to you all at the same time.

This means that all your information is all kept together on one form.

Otherwise, you would be repeating all the same details on several different forms for each different tax relief and allowance.

It also means that HMRC are only processing one form that contains all the necessary information about you at once, resulting in one tax rebate calculation per tax year.

Making your tools and fuel claim

How you make your claim depends on whether you are employed, self employed or both. The value of your fuel and tool expenses also have an affect no the process of claiming.

If you are employed under PAYE you need to make a claim in writing with evidence. If the total value of your fuel and tool expenses is £2500 or more in any one tax year you will need to complete a self assessment tax return.

The quickest and easiest way to complete your tax return is online however you can complete a paper tax return if you prefer.

Tools and fuel expenses

Tool purchases are eligible for tax relief as long they have been bought for work use and includes tool boxes and hand tools.

Claiming for fuel largely depends on how far you are travelling for work and how much your employer already reimburses you for fuel (if anything).

The Tax Office sets Approved Mileage Rate Payments (AMAP) which define how much tax relief you can reclaim on your fuel. This applies to diesel and petrol. At the moment, this is 45p per mile for the first 10,000 miles and 25p per mile thereafter.

But it’s not quite as simple as it seems and it does not include a normal daily commute to your usual workplace. If you make any journeys for work in your own vehicle, then keep a record of the mileage.