Tools Tax Rebate: A Guide for Mechanics and Tradespeople

If you buy your own tools and equipment to do your job, you are spending your own taxed income on something your work depends on. HMRC recognises this, and there are two routes to claim tax relief on it. For mechanics, engineers, fitters, joiners and many other tradespeople, a tools tax rebate can be one of the more rewarding claims, especially when several years are claimed together.

This guide explains both routes, who qualifies, and how to claim without overcomplicating it.

Who can claim a tools tax rebate?

You can usually claim if:

• You buy tools or equipment that are necessary for your job.
• Your employer does not provide them or reimburse you for them.
• You paid income tax in the years you are claiming for.

This applies whether you are a motor technician buying spanners and diagnostic kit, a construction worker buying hand tools, or any employee who has to supply their own equipment. Note that if you are self-employed or work under CIS, the mechanics of claiming differ, although the principle that tools are an allowable cost still holds.

The two ways to claim tax relief on tools

1. Flat rate expenses

HMRC publishes agreed flat rate expense allowances for many trades. These are fixed annual amounts you can claim without keeping receipts, designed to cover the upkeep and replacement of tools and equipment for your occupation. The rate depends on your trade, and some skilled trades have allowances well above the basic figure.

The advantage of the flat rate is simplicity. You do not have to total up every purchase. The trade-off is that if you spend a lot more than the flat rate, you may be under-claiming.

2. Capital allowances for larger purchases

If you have spent significant sums on tools and equipment, more than the flat rate would cover, you may be able to claim capital allowances on the actual cost instead. This route lets you claim relief based on what you genuinely spent, which can be far more valuable for someone who has invested heavily in a tool kit, a diagnostic machine or a major piece of equipment.

To use this route you need evidence: receipts, invoices and records of what you bought, when, and for how much. This is where many DIY claimants come unstuck, because the paperwork has to stand up to HMRC’s checks.

Which route is better for me?

It depends on how much you spend.

• If your tool spend is modest and steady, the flat rate is usually the easy and sensible choice.
• If you have made big purchases, or you kit yourself out at your own expense each year, the actual cost route via capital allowances can be worth considerably more, provided you have the receipts.

A specialist will look at both and claim whichever gives you the larger, properly evidenced result. Getting this wrong in either direction means leaving money on the table or risking a claim that does not hold up.

How much could a tools tax rebate be worth?

As always, you receive tax relief rather than the full cost back, so the value depends on your tax rate and your spend. A flat rate claim across the current year plus four previous years gives you several years of relief at once. A capital allowances claim on a few thousand pounds of genuine tool purchases can be more substantial again. There is no guaranteed figure, but for tradespeople who buy their own kit it is rarely nothing.

How far back can I claim?

The standard window applies: the current tax year plus the four before it, reaching back to 2021/22 as of 2025/26. The oldest year drops off each 5 April, so a claim made now can capture a year that will otherwise be lost.

How to claim

You can claim flat rate tools relief yourself through HMRC online or on form P87. Capital allowances claims are more involved and benefit from careful presentation of your receipts and records.

TaxPro handles both. We work out whether the flat rate or actual cost route gives you more, make sure every eligible year is included, and put a properly evidenced claim to HMRC. Because tradespeople who buy tools very often also have mileage, uniform and travel costs, we check the lot rather than just the obvious. We work on a no win, no fee basis, so a percentage fee only applies if your refund is secured.

Frequently asked questions

I did not keep my tool receipts. Can I still claim?

You may still be able to claim a flat rate expense for your trade without receipts. To claim the actual cost of larger purchases, you generally need the evidence, so keep receipts going forward.

Can I claim for tools I bought on finance?

The relief is based on the cost of the tools to you. How you paid for them, including finance, does not remove your entitlement, but keep your purchase records.

I am a mechanic. Is there a special allowance for me?

Many skilled trades, including motor technicians, have agreed flat rate allowances that are higher than the basic rate. The exact figure depends on HMRC’s published rate for your job.

Does this apply if I am self-employed or on CIS?

The principle that tools are an allowable cost applies, but self-employed and CIS workers claim through their tax return rather than a P87. TaxPro can handle CIS claims separately.

See what your tools are worth

If you buy your own tools and equipment for work, there is a good chance HMRC owes you relief, potentially across several years.

Start your claim with TaxPro and we will check both claim routes and every eligible year for you, on a no win, no fee basis.

TaxPro works on a no win, no fee basis. If we secure your refund, our fee for PAYE claims is 37.5% plus VAT (minimum £50 plus VAT). If there is no refund, there is nothing to pay.