Excellent news the answer is yes you can include second hand tools in your mechanics’ tax rebate claim.
A tools tax rebate claim isn’t just for mechanics with any trade being eligible as long as what you buy is needed to do you job and you’re not reimbursed in full by your employer.
Who is eligible for a tools tax rebate?
As an auto technician, mechanic or other trades person, you are entitled to claim a tax rebate for the tools and other equipment you buy to do your job. The tax rebate rules apply to the self employed, including those paid through the Construction Industry Scheme (CIS) and part or full time employees in the PAYE system.
But what second hand stuff can I put in my tax rebate claim?
Literally any of the tools that you can include as new purchases; anything from hammers to software. If you buy it yourself and are not reimbursed by your employer, you can pop it into your tax rebate claim.
We find some items take our clients by surprise, like:
- Safety boots and high vis jackets
- Diagnostic tools, including their software upgrade
- Standard buy once, like complete ratchet, socket and wrench sets
- Tool boxes
- Basics, like an oil filter wrench, cordless impact gun, pliers and screwdrivers, tire pressure gauge and inflator
- Interest on your finance payments
The cost is intimidating, running to hundreds sometimes thousands of pounds per item. For an apprentice or newly qualified auto mechanic, second hand prices are often the only ones that are affordable.
But even for the more experienced, the quality of these tools means that there is no compromise in buying most of them second hand. You’re just saving yourself the hefty brand new price tag.
Keep your tool receipts
This is the main takeaway here. You can include second hand tool purchases in your mechanics tool tax rebate claim, but the evidence rules still apply meaning you need to have proof of purchase.
That means receipts or an online purchase paper trail. It’s common for online market places like amazon and ebay to sell second hand tools and equipment. Your online account purchase history is ideal to use and can be downloaded easily.
If you buy something from a colleague, friend or individual, ask them to write you a receipt out. This will include the date, name of the tool, amount you are spending and both your signatures. Pay by bank transfer in order to have complete proof, your bank statement then becomes your evidence.
Is it worth the time and faff to actually make an auto mechanics’ tools tax rebate claim?
You can use our free Mechanics Tools Tax Rebate calculator to answer that question yourself. Add up how much you spent on tools up to the tax year that has just ended on the 5th April. A rounded estimate will do. Enter that number into the calculator and it will tell you an estimated tax rebate amount.
Bear in mind that they can be backdated for as far back as you can provide receipts for as long as the item is still in use.
Also, there are other tax allowances and rebates that usually apply to our clients that are mechanics. You add these in with the tools to make up one tax rebate claim. Things like your IMI fees, mileage and washing your work uniform all add an extra few quid into that total.
