Are you working as a mechanic or a builder? In that case you need to use certain tools to do your job. That is why the HMRC will allow you to make claim back on your tax for buying tools as well as maintaining them.
What is rebate on tool tax?
The tools tax refund will be a part of overall tax rebate that is available for construction workers and mechanics. It is the part which applies for your tools and also applies for your uniforms as well as specialist protective clothing, e.g. jackets.
Am I eligible for such tool tax rebate if I am not self-employed?
A mechanic or builder will be eligible, whether you are self-employed or paid via CIS. Even if you are fully employed and also paid through PAYE. In fact, if you maintain and own tools, then you are eligible, however what you may claim for can vary.
What kind of tools can I make claim refund on tax?
You may claim refund on tax for any work tools which you have either purchased or hired, and also any uniform or protective clothing laundering in case you are PAYE.
For example, if you are a CIS worker but do not wear any standard uniform, then you may claim for the boots and high vis jackets, but you cannot claim for any generic work clothes e.g. jeans.
In case you are a PAYE worker, also you have paid for replacing certain equipment or tools instead of the employer then for that you may claim.
Do I need to maintain receipts for everything?
Actually, there can be 2 ways to claim. Either you may claim for exactly the amount you have spent and hence you will have to save receipts for justifying that amount or you may claim ‘flat rate deduction’.
HMRC sets certain fixed amount based on averages for different professions. You may check the list, but if your profession is not listed then too you can claim as standard tax relief which is £60 per year.
Which way will be better?
By claiming back as flat rate will always be a little simpler and also saves you time, as you do not have to keep records for what has been paid by you and do any calculations.
However, if you have spent much higher price on your clothing and tools, then you may find that you may claim much more by putting little time by submitting your tax return along with receipts.
How to claim tax refund on tools?
For claiming all your tax rebate for your tools, as well as many other expenses will be easier by taking help of any claiming agent. They will take full care of everything about your every standard tax rebate.
You need to visit their website and download their Tax rebate form and fill up everything and send them. They will work everything and work out to get maximum rebate possible.
They will provide information about what you are owed within a day. Thereafter they will claim it back, so that you need not wait.