Mechanics & Vehicle Technicians
Tools Tax Rebate Information
If you are a Mechanic or Vehicle Technician you can usually claim a mechanics tax rebate by claiming tax relief for the cost of tools or other equipment that you use during your work, if you have paid for these yourself. This also applies to specialist clothing required for you to complete your job. You can only claim for tools, equipment or clothing that have been purchased specially to use in your work, and you cannot claim if your employer has reimbursed you for the costs in full.
On this page you will find information about:
Tool Tax Relief – what are flat rate expenses?
If you are eligible for tax relief for tools and specialist equipment or clothing, you can usually make a mechanics tax rebate claim for a flat rate deduction.
In most circumstances you do not need to provide receipts. You may be able to backdate your claim for up to four years. The flat rate expenses are included in your tax code, so that you will need to pay less tax in future years. The amount of flat rate expenses that can be claimed is determined by HMRC.
If your spending on tools and equipment exceeds £120 annually, you may be better off making a mechanics tax rebate claim by claiming tax back on tools through a capital allowances claim instead.
Tool Tax Relief– what are capital allowances?
You may be able to claim a tool tax rebate for tools and specialist equipment through a capital allowances claim. In this case, full receipts or proof of purchase will be required. You may be able to claim for purchases made at any time in the past, if receipts or proof of purchase are available.
A mechanics tax rebate capital allowances claim can only be made for tools and equipment purchased solely for your work. You can only make a capital allowances claim for certain items, according to HMRC regulations, and items must pass testing requirements where necessary.
What about tax relief for specialist clothing?
Depending on your job, you may also be able to claim tax relief for the replacement, repair and cleaning of specialist clothing such PPE – Personal Protective Equipment. This only applies if you have paid for the original item, and have not been reimbursed by your employer.
For further Tax Refund information, please follow the links below: