Claiming a tool tax rebate isn’t just for Vehicle Mechanics and people in the construction industry – if you are employed and buy tools that you use for work purposes yourself, then you are probably due tax relief on those purchases.
You can use our free Tool Tax Refund Calculator to find out an estimate what you could be owed by the UK tax office.
Why use the Tool Tax Back Calculator?
Our Tool Tax Refund Calculator give you an accurate, instant idea of how much tax relief you can claim based on your own expenditure. You just need to input how much you have spent on tools and equipment for work in the last tax year. It calculates a realistic estimation of how much your claim is worth. It is that simple.
After that, you just need to fill in our quick contact form and we can take care of your entire claim on your behalf. Or you can go to HMRC’s website and work it through yourself.
How does the Tool Tax Back Calculator come up with a figure?
Our calculator is based on the equation for working out Capital Allowances claims, the name HMRC gives this type of claim over a certain amount of expenditure. At the moment, this is worth 18% of the total value of the tools you purchased. So, if you spent £20,000 on tools, you would be entitled to claim £3,600.
Why is it an ‘estimated’ figure?
We like our calculators to give you useful information quickly, based on your own circumstances without requiring a lot of data. The Tool Tax Refund Calculator does this well by not trying to account for every infinite possibility. These other factors are efficiently dealt with during the claims process.
Am I eligible for a Tool Tax Refund?
The criteria for this tax refund are comparatively simple. Is this you?
• I have bought tools or equipment for work with my own money
• I need these tools to do my job
• I have not been fully reimbursed for these items by my employer
• I am employed and earn enough to pay income tax
If all these answers are “yes”, then you are eligible to claim a Tool Tax Rebate. It doesn’t matter what job you do, the Tool Tax Relief regulations apply across all sectors. Joiners, electricians, hair stylists, builders, chefs, mechanics, beauticians…the list is literally as long as the number of jobs available.
Confusion arises because HMRC’s definition of ‘tools’ is not limited to the traditional hammer, screwdriver and pliers. They mean any tools you need to do your job. If you’re still not entirely sure it applies to you, it’s worth getting in touch to find out.
Here are a few other things you can claim for as well:
• Membership fees for Trade Unions and Professional bodies like the Institute of the Motor Industry or Joinery Managers
• Washing your work uniform
• Buying safety equipment, including boots
• Business mileage
• Travel expenses
• Working from home
It’s very easy for taxpayers to miss legitimate tax reliefs because they just don’t know they exist as HMRC’s regulations aren’t the most accessible of documents. There are all kinds of rules that only apply to a small number of taxpayers. For example, did you know that you can claim a tax refund on the interest you pay on finance agreements with tool providers? You just need a copy of the agreement.
Good to knows…
• Claims can be backdated for four tax years
• You just need receipts or activity reports
• Self employed and employed taxpayers are equally entitled to this tax relief. It also doesn’t make any difference if you’ve had a number of employers during your claim period.
