The last couple of years have been a lot, haven’t they? If you’re anything like us, you’ve been functioning at maximum capacity to adapt to each new external circumstance. In amongst all the lockdowns, COVID-19 illness, fuel shortages, Brexit red tape and everything else it’s easy to forget useful things like your tools tax rebate. That’s why we’re putting out this quick reminder.
You can still claim for the 2020-21 tax year and before.
Who can claim a tools tax rebate?
Anyone who uses tools for work, that they buy themselves, is entitled to claim a tools tax rebate. Mechanics, electricians and construction workers are the most obvious taxpayers that spring to mind when you think ‘tools for work’. And every hammer, wrench and drill counts.
Capital allowances for tools and equipment includes anything anyone needs to do their job. Like hairdresser’s scissors or make up artists brushes. So don’t rule yourself out just because you’re not in a traditional trade.
The tools must be:
- Something you need to do your job
- Bought by you
- Not reimbursed by your employer
- Backed up by proof of purchase
As long as you’re paying tax as a PAYE employee, or through self assessment as a self employed taxpayer, you’re eligible to claim.
Can I claim for anything else?
Yes, we usually combine a tools tax rebate with other applicable allowances. For example, we often find that clients who claim a tools tax rebate are usually also eligible for tax relief on:
- Washing your branded work uniform
- Buying protective clothing – including steelies
- Institute of the Motor Industry membership fee
- Interest payments on finance agreements you have with companies like Snap-on or MAC Tools
- Mileage in your own vehicle (outside of your normal commute to temporary workplaces only)
There are many other tax reliefs and allowances set out by HMRC. But these are the ones that we usually uncover for clients in the construction and automotive industries. They come to us with their tool receipts and we find all their other entitlements.
What do I have to do?
You need to find all your receipts and other financial paperwork.
If you want a better idea of how much you’re entitled to, you can use our free Tools Tax Rebate Calculator to get a personalised estimate.
Remember that you can backdate a claim for allowable tools and equipment for as far back as you can provide evidence for.
