As a professional within the motor industry buying diagnostic equipment is often needed to do your job meaning it will usually be an eligible purchase in addition to a claim for capital allowances for tools.
To keep the car diagnostic equipment up to date software is a necessary expense and is bought usually through an agreement with a tool dealer. The cost because it is attributable to the upkeep of the diagnostic equipment can be included as part of or separately to a tax rebate claim for tools.
Software purchased through a finance agreement
The cost of diagnostic equipment and its software is often spread over an agreed term through a finance agreement with a tool supplier like MAC tools or Snap On. If interest is paid as part of the agreement a claim is possible on the interest element of your payments. It’s important to keep a copy of any finance and software agreements because they will be needed as evidence to support your claim.
What trades are eligible to claim a tax rebate?
If you are employed under PAYE and have to buy tools and equipment to perform your duties you should be eligible to claim if you are not reimbursed by your employer.
