Lots of mechanics and auto technicians are aware that they can claim a mechanic tools tax refund. But do you include your IMechE membership fee in your claim? It’s not just about claiming tax back on tools and other work equipment.
Why is my IMechE membership fee tax deductible?
HMRC publishes something called the ‘Approved professional organisations and learned societies list’. The members of every organisation on this list can make some kind of tax relief claim for their subscription costs. Every Trade Union and professional body has to negotiate their own agreement with HMRC.
Each one has a different proportion of tax relief available to claim. The Institute of Mechanical Engineers is firmly on the list and you can check out any other organisations, like a Trade Union, you belong to here.
Are there any other tradesman tax rebates I don’t know about?
You’ve probably been focused on claiming for your tools, as they are an enormous expense. But there are several other work expenses tax reliefs and allowances that our mechanic and auto technician clients are usually eligible for:
- Interest on finance agreements: Most large purchases from tool companies like Snap On are made using a finance agreement. You can claim tax relief for the interest on your finance payments for tools, safety equipment and software.
- Tool boxes: We often get asked if tool boxes can be included in a tradesmen tax rebate, as well as the tools. Given that they cost hundreds of pounds, this is totally understandable, and yes, they are tax deductible.
- Laundry costs: if your workplace doesn’t have laundry facilities, then you can claim a tax allowance on the cost of washing your work uniform at home.
- Travel: Using your own car or van to travel to a ‘temporary workplace’ that is different to your usual
- Software agreements: Your analytical and diagnostic software is just as much a tool to do your job as your wrench, so it is covered by these tax reliefs.
Can all IMech members make a mechanic tools tax back claim?
There are a few situations where you cannot make a claim as an auto technician or mechanic:
- You don’t earn enough to pay income tax. This is likely to affect apprentices.
- Your employer reimburses you for the cost of your tools or equipment. This applies even id you originally paid out and then they paid you back.
- You don’t use the tools, equipment or safety clothing for work.
You are eligible to make a claim if you work full time or part time in any of the three main disciplines of IMechE: “mass transportation, motorsports or retail vehicles”. Whether you’re a specialist in aerodynamics, fluid mechanics, bodywork, engines, electronic systems, or emission and fuel technology, the mechanics tax relief regulations apply to you as a PAYE taxpayer.
Check out how much you might be getting back using our Mechanics Tools Tax Back Calculator.
Self employed mechanics and auto technicians, mobile and garage based, are also eligible. And you can use the Self Assessment Tax Return process to make your claim.
Making a IMechE mechanic tax rebate claim
Every IMechE member’s claim is different because it is based on your unique circumstances. Some tax reliefs and allowances will apply to you, some won’t.
