I’m a mechanic, how many years can I claim a tax rebate for?

It depends on the type of claim you are making.

If you do not have receipts your ‘Flat Rate’ claim can be backdated for 4 tax years and is worth £120 per year.

If you do have receipts – your ‘Capital Allowances’ claim can be backdated for as many years as you have receipts (as long as the tools are still in use), its worth depends on the value of the tools and equipment.

The first and normally most profitable option is a capital allowances claim. For this type of claim there is usually no limit to the number of years you can go back to claim tax relief for your tool purchases. As long as the tool is still being used, it is possible to make a Mechanics tax rebate claim for as far back as your evidence goes.

Most mechanics don’t know that a capital allowances claim for tool purchases does not have a set time limit.

A crucial factor to the success of a capital allowance tool tax rebate claim is that of evidence. You must have official documentation showing what you bought, where you bought it and how much you were charged.

Credit agreement, receipts and dealer activity reports are all equally valid. Another key point is that you were never reimbursed for these purchases by your employer.

Tool tax code allowance claim

If your receipts have long been recycled, then you can make a Mechanics tax rebate claim for tool purchases by way of a flat rate expenses claim.

HMRC designates a set amount as a flat rate for different industry’s work expenses. Currently, mechanics can claim tax relief on £120 worth of expenditure on tools and safety clothing for work, without having to provide any evidence.

The first claim you submit of this kind can be backdated for four years. This may well be less than the actual cost of your work purchases but, once this has been successfully claimed, you continue to make savings on your tax bill through a change in your tax code.