How Far Back Can I Claim Tools Tax Back?
Many tradesmen can claim tax relief for the cost of tools bought for work. Many are unaware that if they are making a capital allowances claim, there is usually no restriction on the number of years they can go back to claim tax relief for tools bought to complete their job.
There is usually no limit to the number of years you can go back to claim tax relief for your tool purchases. As long as the tool is still being used, and you have proof of purchase, you can make a claim.
What do I need to make a claim?
To get tax relief on your tools you need to provide proof of purchase, and you must not have been reimbursed by your employer. Proof of purchase can be in the form of a receipt, dealer activity report, or credit agreement. Whichever form of proof of purchase is used, it must clearly shows the date of purchase, description and cost.
In the case that proof of purchase is not available, it’s possible to reclaim a tool allowance or flat rate expenses through your tax code.
A flat rate deduction is a nationally agreed amount with HMRC. Currently this amount stands at £120 per tax year, and is to cover the cost of tools and protective clothing that mechanics expend each year. A claim of this type can be made for the last four tax years only.
Following a flat rate expense claim the deduction will shown on your tax code and as a result you will pay less tax for any remaining years in your profession.
Tony Shanks
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