Tax Relief On Tools Guide

Do you buy the tools that you need for work? Then you are likely to qualify for tax relief on that cost – regardless of what industry you work in.

Claiming back tax relief on your tools is a great way to pay less tax and can mean you are entitled to a tax rebate from previous years. At Tax Rebate Services we help our clients get an average tax rebate of over £900. It’s down to you to claim your money back so it’s important to start as soon as you can.

Our free ‘Tools Tax Relief Guide’ explains exactly what can be included in your claim and the process for reclaiming tax relief on your tools.

Which tools are eligible for tax relief?

The basic eligibility criteria are:

  • Your purchases of equipment and tools are necessary to complete your work
  • You buy these tools at your own expense
  • Your employer does not pay you back for this outlay
  • You have paperwork evidence to support your claim (e.g. receipts).

What percentage of the overall cost can I expect to get back?

You can normally claim tools tax relief worth 18% of your tool purchases. A claim can be made for the previous four tax years. If you’ve still got receipts for tools bought before then, these can be added to your claim. You can use our tool tax back calculator to get an estimation of what you may be owed back.

Is there a time limit?

There is no time limit if you are claiming back capital allowances. But the tool needs to still be in use and a receipt has to be provided for each tool. You need a good understanding of the capital allowance rulings before you claim to ensure it is accurate and you are not claiming too much or too little. You can use our capital allowances guide to learn more.

I don’t have receipts. Can I still claim?

If you don’t have receipts, you can still claim a tool allowance. Many industries have agreed different tool allowance amounts with HMRC. For example a Mechanic can claim a tool allowance worth £120 per tax year. The time limit for claiming the tool allowance through your tax code is for the last four tax years only.

Good to know

In most cases you will normally be able to claim more tax relief back if you can provide receipts or some other proof of purchase. The agreed tool allowance for each industry rarely covers the actual cost of what is spent on tools for work use. This basically means that if you can make a capital allowances claim, you’ll be able to claim more of the money back you are entitled to. In addition some other tax reliefs are available which you can find out more about through our tax guides.

We make it easy for you to claim

Let Tax Rebate Services help you claim tax relief on your tools. We are a team of fully qualified, professionally regulated accountants. We have honed our procedures to make the process as simple and stress-free as possible for our clients. Contact us today by filling in our easy online contact form or give us a call on 01228 520477.


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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.

Tax Rebate Calculator
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