Whenever you are putting your cash and buying the tools for work, you will become eligible to claim the Tax Back on Tools. Due to lack of awareness, many mechanics are failed to claim this great offer and worry for later. In general, taxpayers are eligible for applying tools tax rebate whenever they are purchased the tools to complete the job. You can be able to make a claim for any tools, which you had bought for work during the past four tax years. Sometimes, you can claim the capital allowances for the tools, which have been used for a longer period.
Meaning of tool tax rebate
The tool tax rebate is the major part of the overall tax rebate accessible only for the construction workers and mechanics. It is the basic part applicable to the tools but sometimes it is applicable for specialist protective clothes and uniforms. When the employer does not pay the expense of buying the tools, you can use this opportunity to claim everything.
Reasons to claim a tool tax rebate
When you work as a mechanic or builder, it is quite challenging to do some works without using the specific tools. In some cases, you tend to purchase the required tools by spending your cash. However, the employers never get paid for those tools yet you have completed the task. This is where HMRC comes into play and lets you claim the tax back on purchasing and maintaining them. This form of tax relief operates slightly differently when compared to the tax credit. It reduces the amount of income on which you need to pay the tax rather than reducing your tax liability directly. Buying the tools you require to work on the construction site or some other destination can add up to the expensive sum. With the Tax Back on Tools, you can get that amount and enjoy peace of mind.
Checklist to find the eligibility
Do you want to qualify for the tools tax rebate? Ensure whether you have fulfilled all the below mentioned aspects.
- Buy the tools and equipment you require for the work by spending your hard-earned money
- Having the written evidence for all the tools purchases including the receipts
- Not get the corresponding pay for the tools by the employer
Steps to follow to claim back tax on tools
Claiming your tax rebate on the tools is extremely easier when you follow the below mentioned steps properly.
- Just download the tax rebate form and fill it up with the required details
- Do not forget to attach the necessary documents such as receipts
- Send it to the HMRC and wait for the reply to confirm that your claim is in progress
- You have to make the payment in the following week
If you do not know the process involved in this claim, then you can seek help from the experts. As they are taking care of everything, you will sit back and relax for a while.