How much can you claim for tools without receipts?

If you know for sure that you do not have any receipts for your tools, then you can still claim a flat rate expense.

Flat rate expenses are a pre-determined amount decided by HMRC that taxpayers in certain industries can claim for specific work expenses.

There are often different amounts set for different sectors. For example, mechanics and cabin crew have different amounts attached to their uniform flat rate allowance.

Flat rate expenses for tools

In terms of tools, the Tax Office have different flat rate expenses depending on your trade and industry. For example HMRC have settled on the sum of £120 per year as the Flat Rate Expense amount allowable for mechanics.

This means they are allowing for the fact that you spent £120 on tools during the tax year in question. Making a tax reclaim amount of £24 per tax year (about 20% of the total amount).

You do not need any evidence whatsoever to make this type of claim. Although the difference between the flat rate expenses and what you actually spent is perhaps good incentive to keep those receipts in the future.

These figures are not set in stone and may change as part of the Treasury’s other financial arrangements. This can be backdated for up to four tax years only. Beyond that any otherwise applicable tool tax relief is lost. After you first apply for Tools FRE Tax relief, the amount will become part of your tax code calculation, meaning you continue to pay less tax. This carries on until you tell HMRC that your situation has changed.

Keep tool receipts for the future

Many tax payers are unaware that tax relief is available on the tools they buy for work. This is especially the case for employed workers under PAYE. Because of this receipts are often not kept meaning a claim isn’t possible.

It’s a great idea moving forward to keep every receipt for all tools and toolboxes bought for work so you eligible to make a claim in the future.