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PAYE,

A Mechanic’s Guide to Tax Deductions

Did you know that, if you work as a mechanic, you can claim a tax refund for the cost of your tools or other equipment that you purchase for work?

To learn everything you need to know about taxes as a mechanic, we've answered a few common questions that will hopefully help answer your doubts. 

 

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Who is eligible to get these tax deductions?

You’re eligible to claim a mechanic's tax rebate if:

  • You need to buy tools and other equipment for your daily job as a mechanic;
  • You spend your own money on these tools;
  • You don't get any reimbursement from your employer.

 

What deductions are available to me?

As a mechanic, you are eligible for a flat rate deduction of £120 per tax year to cover the cost of tools and equipment.

 

What do I need to prove these expenses?

As a proof of purchase of these tools, you will need to keep the receipts or credit agreements. Note that there’s no limit on the Mechanic Capital Allowance if you have the original proof of purchase and if you are still using these items.

 

What equipment can I claim for?

You can claim for anything specifically used for work, as:

  • Parts supplied for customers;
  • Replacement tools;
  • Repairs and maintenance of equipment;
  • Work insurance;
  • Protective clothing;
  • Laundry & cleaning for working clothes;
  • Telephone for business use;
  • Professional subscriptions;
  • Internet for professional use;
  • Software agreements;
  • Advertising;
  • Postage & stationery;
  • Use of home as office;
  • Computer consumables;
  • Bank charges on business account;
  • Interest on business loans;
  • Accountancy fees;
  • Wages;
  • Fares & travelling expenses;
  • Subsistence (if you work away from home);
  • Vehicle running costs;
  • Fuel;
  • Repairs & maintenance;
  • Road tax, insurance & MOT test;
  • Parking & tolls.

 

Am I owed a tax refund?

You might be eligible for a tax refund from HMRC if you have daily costs of work, like the ones we previously referred to, that may help bring down the amount of tax you own.

A good tax company should be able to save you tax when you file your tax return. We can do this for you by reviewing your financial affairs and identifying areas in which changes can be made in order for everything to become more tax efficient.

 
 
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Published by Elisa Ribeiro Soares
Elisa Ribeiro Soares