If you work as a mechanic or builder, more than likely you have to buy the tools you need for your work. If your employer does not reimburse these costs, then you are entitled to make a mechanics/builder’s tax refund claim. The amount you can claim back is usually worth around 20% of the value of your tools. In fact, regardless of the industry you work in, if you pay for your own tools, then you will be eligible for a tax refund. With average claims at around £850, this can be a nice windfall payment
These are the two different types of Mechanics Tax Refund claims you can make
If you have spent more than the tool allowance (£120) during the tax year and have receipts, then you can submit a capital allowances claim. The amount of tax relief available to you for this is usually around 18% of the actual cost of the tools and equipment you purchased. This type of claim can be backdated beyond four years if you are still using the tools in question and still have proof of purchase.
If you spent up to £120 on tools during a tax year and you haven’t got any receipts, this is would better apply for you. Otherwise known as a ‘flat rate expense’, HMRC has agreed a figure of £120 per tax year for mechanics. This means you can claim back 20% of this amount, about £24 per financial year. We can backdate your claim for 4 years.
Even if your tool allowance is considered in your tax code, you can still make a claim for the actual cost as long as you have receipts.
Whilst each claim is assessed on its own merits, you must meet the following basic requirements:
You are required to buy your own tools in order to do your job. Your employer does not reimburse you for the tools you have purchased yourself.
Yes, for the capital allowance refund where you have spent above £120 in any financial tax year but for the flat rate tool allowance refund you do not usually have to provide any receipts.
Yes, you can back up to 4 years if you have not already submitted a claim during that period.
Filling in the appropriate forms and understanding the confusing Capital Allowance legislation for a tool tax rebate can be time-consuming, so if you’d rather be spending your time doing something other than paperwork, then allow the team at MyTaxRefund.co.uk to do all the hard work for you. We’re experts in helping mechanics get the tool tax refund they’re entitled to, so get in touch with us today to discover just how easy it is to get what you’re owed on your tools with minimal effort needed.
There is no real time limit for claiming tax back on your tools. However, we recommend you make your claim within 4 years from the end of the tax year in which you purchased your tools. Claiming within 4 years means you can claim your full allowance.
Yes, you can. Our tool tax rebate calculator can give you a good idea of how much you might expect to receive by filling in a few basic details online.
If your employer has reimbursed you for the cost of the tools, you won’t be able to claim any refund on these items as it’s your employer who’s paid the bill for the items – even if you paid for the first and they gave you the money back at a later date. Also, if you haven’t earned enough to pay income tax yet, you won’t be able to take advantage of the tool tax refund (this mainly applies to Apprentices). Keep your receipts safe though, as you will be eligible to make a claim once you have paid tax for a full tax year.
In addition to claiming for your tools, you may also be able to claim a small uniform laundry allowance if you are required to wash your overalls / protective clothing at your own expense (i.e at home).
That’s easy, just click below to do a quick calculation on the amount you could be entitled to and submit your claim, and we will do the rest. As tax refund experts, we have helped thousands of UK employees in a wide range of industries access the rebates they are entitled to, so get the ball rolling today, and you could be enjoying your refund sooner than you think.