Mechanic Tax Rebate

Claiming a Tool Tax Rebate

Whatever your job, trade or profession is, if you buy tools to carry out your work, in most circumstances you will be eligible to claim a tool tax rebate.

If you have to buy tools to carry out your work and your employer does not reimburse you for the purchase, you should be able to claim the cost of the tools as a legitimate expense for tax relief.

In our experience, clients are usually able to achieve an average tax rebate of almost £1000 providing they know what they can claim for and how to go about it.

When I buy tools, what qualifies for a tax rebate?

Providing the tools you buy are necessary to carry out your job, you will almost certainly be able to claim a tax rebate if the following conditions have been met:

• Any tools or equipment are purchased for the fulfilment of your job
• You have paid for the tools yourself
• Your employer has not reimbursed the cost of purchasing the tools
• You have valid receipts for the purchases

What can I claim?

As a general rule, you can usually claim a tax rebate equal to 18% of the cost of any tools or equipment you purchase.

Can I claim for tools I have bought in the past?

Yes, you can submit a claim for a tax rebate for any tools or equipment you purchased throughout the previous four tax years.  It is also possible that, providing you have valid receipts, you can submit a claim for purchases made over four years ago.

Have I left it too late to submit a claim?

Providing the tools are still in use and you have a valid receipt for each of them, there are no time restrictions in place if you are applying for tax relief through a capital allowances claim.

What happens if I haven’t kept any receipts?

You will still be able to claim a tool allowance even if you no longer have receipts for the purchase of tools and equipment. However, this is through an alternative process as a result of arrangements between certain industries and HMRC.  If, for example, you are a garage mechanic you will automatically qualify for a tool allowance of £120 in each tax year and will be allowed to claim for that allowance for the previous four tax years as well.

However, since the tool allowance agreed between each industry and the HMRC will almost certainly not be enough to cover the actual cost of tools and equipment purchased, this is not the most effective way to claim tax relief.

What do I have to do to make a claim?

You will need to submit a capital allowances claim to HMRC together with supporting evidence, i.e. receipts, for everything you are claiming for.

Capital allowance legislation is complicated and, in order make sure your claim is successful and for the maximum amount, it is important to understand how the system works.

AMG Financial has the knowledge and experience to successfully process your tool tax rebate claim quickly and professionally

Why use AMG Financial to make a claim?

• AMG will ensure you receive the maximum tax rebate possible if your claim is successful
• AMG secure an average tool tax rebate of almost £1000 for each of their clients
• AMG are AAT, CIMA, CTA, ATT accredited licensed accountants, professional and fully qualified
• AMG do all the work on your behalf, what could be easier?
• It will cost you nothing to try – if your claim is unsuccessful, no fee is payable