Mechanics Tax Rebate Guide

Are you responsible for buying the tools you need to get your job done? If so, you’ll be pleased to hear you can apply for a mechanic tax rebate today.

As a mechanic, it’s likely you’ll spend a considerable sum of your own money on tools for work.

If you haven’t already been reimbursed by your employer, you should be able to claim back some of the cost with a mechanic tax rebate claim.

Our mechanics tax rebate guide explains which tax reliefs are available and how to get through the claiming process.

Am I eligible for a mechanic tax refund?

If you:

• Buy tools and equipment that you need for your job
• Spend your own money on work tools
• Do not receive full reimbursement from your boss

… you’re eligible to claim a mechanics tax rebate.

What is a mechanics tax rebate?

Because you need to buy tools for work you can claim an income tax rebate by claiming mechanics tax relief. HMRC allows tax relief on tools to be claimed back, to help cover the cost of these essential items by way of a capital allowances claim.

Already have a tool allowance in your tax code? You can still claim for the real cost of your tools, even if you already have the tool allowance in your tax code.

The amount you can claim back for the actual cost of your tools and toolboxes is normally far higher than the value of the tax code allowance.

How much is a mechanic tax refund worth?

A claim is worth about 18% of the total cost of your tool purchases. You can use receipts as evidence for as far back as you can provide them for as long as the items are still in use.

Your claim is made through the capital allowances act 2001 with average mechanics tax rebates often being worth more than £900.

Some years you could spend more on your tools than the allowance included in your tax code. To get back everything you’re entitled to, you have to claim capital allowances on the cost of the tools you have bought.

You can use our free tool tax refund calculator will even give you a personal estimate of how much tax you can expect to get back.

Do I need receipts to make a claim?

HMRC will need you will need to have evidence to show what you have bought. This can be in the form of receipts or an activity report from your tool provider(s).

Your tool provider should be able to give you an activity report if you ask nicely.

How do I submit my mechanics tax rebate claim?

HMRC needs you to submit your claim on a form P87 or a self assessment tax return.

A claim worth under £2500 in any one tax year should be processed via a P87 with claims over £2500 submitted on a self assessment tax return.

Both forms can be completed and sent to HMRC online or by post.

Can I claim for uniform and protective clothing allowance too?

Almost all mechanics will need to wash and maintain their own protective clothing. The tax office will let you claim back a set amount of £60 per tax year to cover the cost.

However, if your employer provides a facility at work to wash your protective clothing you won’t be able to claim. Our tax guides are free to use and help you find out more about other tax reliefs.

Finance tax relief

Most large purchases like tool boxes are bought through a finance agreement from a tool provider like MAC tools or Snap on. Here at Tax Rebate Services we are also successful in claiming back tax relief on the interest part of any payments made under a finance agreement. So if you have any finance agreements let us have them with your tool receipts to get even more money back.

Institute of the Motor Industry tax rebate

If you’re a member of the IMI and pay for the membership fee out of your own pocket you can claim back a tax rebate. We can reclaim this for you at the same time we’re processing your mechanic tax rebate on your tools.

I have changed employers … Does this matter?

No, your number of employers makes no difference to your mechanic tax rebate claim. Your tax affairs are between you and HMRC, it has no bearing on your current employer and they are not liable to make any tax rebate payments to you.