The 2019/2020 tax year finished last month meaning another tax year is now open for business.
You: Is it really worth putting in a claim for my tools?
Because you know it’s going to require some effort and you want to know you’re not just wasting your time for a couple of quid.
Us: We know, this is one of our most commonly asked questions.
To answer your own question, try this:
- Tot up how much you’ve spent on tools between April 2019 and April 2020.
- Put that number into our mechanics tax rebate calculator.
- Get your personalised tool tax rebate estimate.
- Decide for yourself if a few minutes is worth at least a few hundred pounds.
If you’ve never made a claim for your tools in the past it’s not just the 2019/2020 tax year you can claim for. This means you could be due a tools tax rebate for as far back as you can provide your receipts for.
What’s good about the TRS mechanics tax rebate calculator?
Our tax rebate calculator only needs you to input one number which is how much you spent on tools in that tax year. It doesn’t even need your name. So, not only is there no monetary charge for using our mechanics tax rebate calculator, it’s not costing you your personal data either.
Anything not so good?
Only that, as with many tax things, the process isn’t quite that simple. The calculator gives you a realistic estimate. We can’t give you a precise figure unless we go through all the details of your tax position. Most importantly, how much tax you’ve paid and at what rate.
But then there’s the extra good news about other non-tool tax reliefs and allowances that we can add into your tax rebate claim.
What is the calculator actually working out?
Our mechanics tax rebate calculator is working out 18% of the total tool spend amount you enter. Because this is the current rate of Capital Allowances relief, which is HMRC’s name for the type of tax rebate you are claiming.
Why can auto technicians and mechanics claim tax relief on their tool purchases?
A good question. Auto technicians and mechanics expect to spend their own money on tools they need to do their job. Whether you’re employed or working for yourself.
In your industry, it is not usual for employers to reimburse these costs.
And this is where HMRC have your back. Because they know these tool purchases are totally unavoidable work costs, you can claim tax relief on them.
Who qualifies for a mechanics tax rebate?
There are eligibility criteria that must be met in order to make a claim:
- You bought the tools yourself and you didn’t receive reimbursement from your employer.
- You paid income tax during the 2019-20 tax year (or during whatever year you’re claiming for).
- The tools are definitely a work necessity.
As we’ve previously said, this is not just for self employed people. You are entitled to claim a mechanics tax rebate if you are paid through the PAYE system.
Do I need evidence for my tools claim?
Yes, you do need proof of purchase for the tools in your claim. This can be receipts, activity reports from your tool provider and statements from online companies (like eBay and Amazon).
Extra tip: Keep all your credit agreements as well. You can also claim for the interest on these payments.
There’s other stuff to claim for…
HMRC have a whole raft of different work expenses tax reliefs and allowances. We’ll look into your situation and find all the ones that you can claim for. People just don’t know all the details of the regulations – why would you?
Do you know that you can claim for IMI fees, washing your work uniform and buying safety equipment are all available? And all on top of that figure you got from the mechanics tax rebate calculator. Nice.
