Tool Tax Refund: How to claim if you are employed.
The tool tax refund calculator is for employed tax payers and can help you find out how much tax back on tools you can claim.
All you need to do is enter the total amount you have spent on tools, and you will get an estimation on how much tax back on your tools you could be owed.
To be eligible to claim tool tax relief you must:
- Have paid for the tools yourself.
- Need the tools to perform your job.
- Earned enough to pay tax.
- Not have been reimbursed in full by your employer. If you are reimbursed for some of your tool costs a claim is usually still possible.
How the tool tax refund calculator works
Normally a tool tax refund is secured by making a claim for capital allowances. The amount of tax relief from a capital allowances claim is generally worth 18% of the total value of your tools.
So if you bought £10,000 worth of tools a tool tax refund worth £1800 could be claimed back.
Other factors like how much tax you have paid can affect how much you are owed.
Trades and professions we have helped
The list is long but here are just some of the different types of professions we have assisted:
- Mechanics for tools and tool boxes (this includes tool boxes bought on finance)
- Joiners for all tools
- Electricians for all tools
- Chefs for knives
- Hairdressers for equipment like scissors
Many trades people have to keep buying tools on a regular basis meaning a claim can be made each tax year.
Tax refund on your finance agreements
If you spread the cost of your tools by using a finance agreement with a tool provider we are very successful in securing a tax rebate on the interest part of your finance payments. For example if you’re a mechanic who’s bought a tool box from MAC or Snap on all we need is the finance agreement from your tool provider to reclaim the relief you are due.
IMI tax relief
If you pay for your own membership into the Institute of the Motor Industry you will be eligible for tax relief on the membership fee.
Tool tax refund FAQ’s
Do I need my receipts? To make a tool tax refund claim for tools you will need proof of purchase. This can be in the form of an activity report from your tool provider or an individual receipt.
Do I have to be self employed? No you don’t need to be self employed to qualify. Employed people are entitled to claim tax relief on tools bought for work and it doesn’t matter if you have had different employers.
How far back can I claim? A claim can be made for the last four tax years but receipts can often still be used for as far back as you can provide them for, as long as the item is still in use and you are claiming capital allowances.
How long does a claim take? A claim for tax back on tools typically takes up to 12 weeks to complete due to tax office timescales. We track each tool claim to ensure the quickest possible conclusion for you.
What if I don’t have receipts? You can always ask your tool provider for copies but if this isn’t possible you can claim for a tax code tool allowance. The tool allowance is usually worth £120 per tax year and can be backdated four years. The allowance is an agreed an amount for particular trades, which can be claimed without the need for receipts.
How do I make a tool tax back claim?
Tax Rebate Services has specialised in making tool tax refund claims since 2002. Claiming back capital allowances is not easy and the process needs knowledge to make sure you only include allowable costs. We can help you reclaim all you are entitled to in the shortest time possible. As a leading Tax Rebate Service in the UK we make the process simple and hassle free, using qualified accountants.