Can I claim a tool tax rebate for my MAC tools?

Yes, you can claim a tool tax rebate if you have bought MAC tools for work. If your employer doesn’t pay you back, you are eligible to claim capital allowances on this cost.

How do I make a MAC tools tax rebate claim?

There are two ways to make your MAC tools tax relief claim: flat rate tool allowance and capital allowances. There are two things that influence which claim route you take; if you spend over £120 on MAC tools for work in one year and if you have kept your receipts.

• Capital allowance: If you spend more than £120 on your own MAC tools, then you will want to consider this option. With capital allowances, you can claim capital allowances on the real cost of your MAC tools but you must have proof of purchase. This can be a receipt or a MAC tools activity report or transaction history. As you know, just buying a MAC drill and wrench set easily pushes you over that threshold. If you can’t find all your tool receipts you can ask your MAC tool provider for a transaction history which can be used instead of the individual receipts.
• Flat rate allowance: This type of allowance has been set by HMRC and can apply to a variety of work expenses. For mechanics’ tools, the flat rate allowance is £120. This means that you are allowed to claim back the tax on tools you buy up to that amount, around £24.You do not need any receipt evidence to support this claim. Your flat rate allowance for your MAC tools purchases will be written into your tax code after your first claim.

MAC tools finance agreement interest

The MAC Credit option is very popular with mechanics buying from their local distributer. Spreading the cost of your big MAC tool purchases, like work stations and diagnostic units, is a smart way to make sure you have the tools you need. The interest charged on payment plans is eligible for tax relief and can easily be added to your MAC tool tax rebate claim. You just need copies of your finance agreement as evidence for HMRC.

Are there any other tax reliefs I can claim as a mechanic?

There are so many tax reliefs and allowances available to taxpayers that it is impossible to say which ones are definitely applicable to all mechanics. Claims for our previous auto mechanics usually include tax relief on tool purchases and the interest on those finance agreements. They often also include:

• Buying safety clothing and work uniform: If you’re employed, your workplace can provide your PPE. But if you have to buy any new items this can be quite a hefty cost and eligible for tax relief.
• Washing work uniform: Yes, the fact that you have to launder your uniform or PPE is acknowledged by HMRC with a tax allowance. The only time it won’t apply, is if your workplace has washing facilities.
• Institute of the Motor Industry (IMI) membership fee: Many auto mechanics we’ve worked with are members of the IMI. The agreement they have negotiated with HMRC means that their members can claim tax relief on their membership fee. Not every professional body is in this position, so make sure you take advantage of this entitlement.
• Mileage: A more complicated tax allowance. Basically, if you drive your own car or van on any work journeys other than going from your home to the garage, then it’s worth looking into. Even if your employer pays you mileage, if it’s not the full AMAP amount, you can claim the difference.

I thought only self employed taxpayers can claim tax relief on work expenses

You are not alone, lots of our clients are paid through the PAYE system and are surprised to discover that the tax relief regulations also apply to them. If you are eligible the only stipulation is that you have paid income tax.

How far back can a MAC tools tax rebate claim be made for?

Capital Allowance claims don’t have a time limit. The rule here is that you are still using the tool or piece of equipment and that you have your proof of purchase. This means we can submit a MAC tools tax rebate claim as long as you can provide the evidence.

If you have bought tools from another tool provider you can claim for these at the same time.

Do I have to submit a different claim for each different tax relief?

No, we find every single tax relief that applies to your situation and put them all together in one submission.