How much will I get for a tool tax rebate?

The amount you get for a tool tax rebate is dependent on several factors, including: how much you earn, how much tax you pay, how much you have spent on tools, what evidence you have to support your claim.

On average, you are looking at a tools tax rebate of about 18% of the cost of your tools. You can input your own figure into our Mechanics Tax Rebate Calculator to get a more personalised figure.

The average claim figure we secure is over £900 for our tool tax rebate clients.

Tax rebate claim types for tools

The two different types of tool tax rebate also affect how much you receive.

Flat rate expenses for tools

As a trades person, you are entitled to claim a flat rate expense (FRE) for tool purchases. For example if you are a mechanic HMRC have come to a figure of £120. This means that they allow you to claim a tax rebate on £120 of tool expenditure in one tax year. This is about £24, 20% (Basic Rate of Tax) of the £120 FRE amount.

You do not need to have any receipts in order to claim a flat rate expense tax rebate. If it is the first time you are making an application for a tax rebate, this can be backdated for four tax years.

Capital allowances for tools

Lots of auto technicians and mechanics spend way more than £120 on tools during a tax year. And HMRC also have provision for this. This type of tool tax rebate claim falls under the Capital Allowances section of the tax relief regulations. In this case, the amount of tax relief you get is about 18% of the actual cost of your tool purchases.

There are some rules to this type of claim. You must have evidence, like activity reports and receipts to prove your purchases. You must also be using the tools in question. There is no time limit on how far back you can make a tool tax rebate claim through the Capital Allowances system, as long as you meet all of these criteria.