How Can You Get A Mechanic Tool Tax Rebate?

If you are a mechanic and wondering about how to claim a tax rebate on the tools that you have purchased to carry out jobs, you will find detailed guidance through the following blog post. Here, we will discuss the process of applying for a mechanic tool tax rebate, how to estimate the amount you can expect to receive, as well as the amount of time it can take for your rebate to be paid into your account.

How Can You Get A Mechanic Tool Tax Rebate?

If you are a mechanic or work in a related field and you have purchased tools for your job, you may be eligible for a tax rebate on those tools by following these suggested steps::

• Keep a record of all the tools you have purchased: To claim a tax rebate, you will need to provide evidence of the tools you have purchased, so make sure you keep receipts, invoices, and other relevant documentation.

• Determine if you are eligible: To be eligible for a tax rebate on your tools, you must have paid tax on your earnings and you must have purchased the tools yourself. You can’t claim a tax rebate on tools that your employer has provided for you.

• Submit a claim to HMRC: You can submit a claim for a tax rebate on your tools by filling out a P87 form and sending it to HM Revenue and Customs (HMRC). You can also make a claim online through the government’s website. Be sure to include all of the relevant information, including the cost of the tools, the date you purchased them, and any other relevant details.

• Wait for your rebate: Once HMRC receives your claim, they will process it and determine if you are eligible for a tax rebate. If you are, they will send you a refund for the tax you paid on the tools.

That said, you will only be able to claim tax relief on the cost of tools that you have purchased as long as the following conditions are met:

• the tools are purchased by you, and not provided by your employer
• the tools are used solely for work purposes
• you paid tax on the income used to purchase the tools

You can claim tax relief on mechanic tools that you have purchased for your work for up to four years after the end of the tax year in which the expense was incurred. For example, if you purchased the tools in the tax year 2019/20, you have until April 5, 2024, to make a claim for tax relief.

It’s important to note that tax rebates are only available for tools that are used exclusively for work purposes. If you use your tools for personal use as well, you may not be eligible for a tax rebate on them.

How Much Can You Claim With A Mechanic Tool Tax Rebate?

The amount that you can claim under a mechanic tool tax rebate will depend on a number of factors, including: 

• the cost of the tools 
• the amount of tax you have paid 
• your personal circumstances

However, in general, the amount that you can claim will be based on the amount of tax relief that you are entitled to on the cost of the tools.

The amount of tax relief you can claim will depend on the cost of the tools and your tax rate. You can typically claim tax relief on the full cost of the tools up to a maximum of £500 per tax year. The tax relief is given at your marginal rate of tax, which means that the amount of tax relief you can claim will depend on your tax rate. 

For example, if you are a basic rate taxpayer, you can claim tax relief at 20%, while if you are a higher rate taxpayer, you can claim tax relief at 40%.

You can use this Tool Tax Refund Calculator to get an estimate of the amount you can claim/

How Long Does A Mechanic Tool Tax Rebate Take?

The length of time it takes to receive a mechanic tool tax rebate can vary depending on a number of factors. The processing time can depend on the complexity of your claim, the accuracy of the information you provide, and the current workload of HM Revenue and Customs (HMRC). Typically, it takes about 4 to 8 weeks to receive a response from HMRC.

If you submit your claim online through the government’s website, you can usually expect a faster response time than if you submit a paper form. However, it’s important to note that if HMRC needs to request further information or clarification from you, this can also add to the processing time.

In most cases, once your claim is processed and approved, it takes HMRC around 8 to 12 weeks to refund the amount to you.

Therefore, you can expect to receive your tax rebate in a few different ways. If you have submitted your claim online and have provided your bank account details, you can receive your rebate directly into your bank account. Alternatively, HMRC may send you a cheque in the post.

Conclusion:

The above discussion covers the details of the process involved in claiming a mechanic tool tax rebate. Claimants need to make sure that they have the necessary supporting evidence for their claim and that they are using the correct form (P87) to apply for a mechanic tool tax rebate.

References:

Tool Tax Refund Calculator

Mechanics tool and uniform Tax Claim | Swiftrefunds.co.uk

Claim tax relief for your job expenses: Uniforms, work clothing and tools – GOV.UK