Claim A Tool Tax Rebate Today

Do you buy your own tools for work? Don’t lose out on your tool tax rebate.

Taxpayers are eligible to apply for a tools tax rebate if they are required to purchase the tools they need to do their job. a

You can make claim for any tools you’ve had to buy for work during the past four tax years – sometimes even longer by claiming back capital allowances.

How do I claim a tool tax rebate?

A tool tax rebate can be claimed back online or by post using either a P87 form or a self assessment tax return.

The value of your claim in any one tax year directly effects what form you need to complete and submit to HMRC.

HMRC enforce a £2500 threshold with a P87 used for claims below and a tax return for claims above.

You could have a claim which involves multiple tax years with some years above £2500 and some years below. If this is the case you will usually need to complete both a P87 and a tax return accordingly.

If you complete a tax return already for a different reason (for example rental income) the value of your claim doesn’t matter and you should include your tool claim on your tax return in the relevant employment section.

P87 tool tax rebate claim

The P87 employment expenses form is the form needed if your tool claim is worth less than £2500 in any one tax year.

If your tool claim is worth £2500 or more and is submitted on a P87 HMRC will normally review your P87 and write to you to confirm that a self assessment tax return is necessary.

A P87 is best completed and submitted to HMRC online

Self Assessment tool tax rebate claim

A self assessment tax return is required if your tool claim is worth £2500 or more.

You can open a self assessment tax return by contacting the Self Assessment Helpline on 0300 200 3310 or you can register at www.gov.uk/log-in-register-hmrc-online-services.

Can I claim a rebate for my tools?

Tax relief can be claimed on your tools and equipment if they are necessary to fulfil your job specification. To qualify for a tools tax rebate, you must:

• Purchase the equipment and tools you need for work with your own money.
• Have written evidence of these purchases, like your receipts or a tool provider report.
• Not be paid back for the tools by your employer.
• Have earned enough to pay income tax.

You can use our free tool tax relief guide to find out what else you can claim for.

How much tax back on my tools can I claim?

On average you can claim back 18% of the actual cost of the tools you have bought.

You can use our tool tax back calculator to estimate how much your tool claim could be worth.

Visit our Tax Relief page for information on other areas you may be able to claim for.