Claim Your Mechanics Tax Rebate

What type of tax rebate claim can a Mechanic submit?

At work the main expense incurred by mechanics is normally the cost of tools, toolboxes and other equipment.

These are the two different types of Mechanics Tax Rebate claims you can make which gives you tax relief on the cost of  your tools and equipment:

Capital Allowances for tools

If you have spent more than the tool allowance (£120) during the tax year and have receipts or activity reports to support your claim, then you can submit a capital allowances claim.

The amount of tax relief available works out at about 18% of the actual cost of the tools and equipment you purchased.

There is no time limit to claim capital allowances as long as the tool is still in use and you can provide proof of purchase.

Tool Allowance

If you spent up to £120 on tools during a tax year and you haven’t got any receipts, this is the correct claim for you.

Otherwise known as a ‘flat rate expense’, HMRC has agreed a figure of £120 per tax year for mechanics. This means you can claim back 20% of this amount, about £24. We can backdate your claim for 4 years.

Even if your tool allowance is taken into account in your tax code, you can still make a claim for the actual cost as long as you have receipts.

How do I submit a Mechanics tool tax rebate claim?

The way HMRC want to receive your tax rebate claim depends on the value of your claim in each tax year of your claim.

Mechanics claim value under £2500

If your claim value is less than £2500 HMRC will need your claim sent in on a P87 form unless you complete a self assessment tax return for a different reason (eg rental income).

The P87 form is specifically for individuals who are employed and have expenses at work like tools and can be submitted to HMRC either online or by post.

Mechanics claim value over £2500

For a mechanics tax rebate claim with a value of over £2500 a self assessment tax return will typically have to be submitted. If you already have a self assessment record you should include your tool claim in the employment section of your tax return.

If you don’t already have a self assessment record HMRC can open one up for you and then you can submit it online which is usually quicker and easier than the paper option.

What else can a Mechanic claim a tax rebate for?

It’s not just about getting a tax rebate for tools. As part of our service we ensure you get back everything you are entitled to including:

• Uniform allowance if you wash your own protective clothing. It’s worth £60 per tax year.
• Finance payment tax relief if you make interest payments as part of a finance agreement. With the cost of a tool box being pretty hefty the interest you pay can really rack up so keep any finance agreements from your MAC or Snap on tool provider.
• IMI tax rebate if you pay for your own membership into the Institute of the Motor industry.