Mechanic tools Tax refund

Tiffster

Hi,

I received the paperwork at work about this today, seemingly you can claim the tax back on tools bought to do your job.

I've been a mechanic since April 2011. Since then i have spent £2770.06 on tools :eek:

I would like to claim this back, however i have a concern. I was unemployed for two years prior to 2011 i went traveling and had lots of "cash in hand" jobs to keep me ticking over... I was employed prior to that for 3 years.

Will i be investigated if i slap in a tax claim for the tools ?

paddedjohn

Have you got receipts for everything you have bought since April 2011?

Tiffster

Yes i have them all.

bartnwood

Hi Tiffster,

From what you have said there is no reason that stands out to give cause for concern for investigation.

As you have all of the receipts for your work related expenses you are eligible to make a claim.

If you start the process now you might just receive your refund in time for Christmas

John_Pierpoint

Are you now an employee ? rather than self employed ?

You master expecting you to spend thousands on tools required to do his job could be though a bit over the top.

Tiffster

I've always been an employee, i've never been self employed.

All of the claim forms i have looked at require you filling in your employement history. If they see the 2 year gap might that not raise some questions ?

It's standard practice for most mechanics to buy there own tools. £2770 isn't that much either, some of my co workers have spent £10k +

Tiffster

Any further thoughts on this issue ?

Thanks.

00ec25

Tiffster wrote: »

Any further thoughts on this issue ?

Thanks.

not really, you simply need to file your claim based on your receipted total spend

as your spend is way above the flat rate amount you can ignore the other thread you have posted in as you will be claiming actual spend rather than the flat rate allowance

all perfectly normal stuff for a mechanic

do NOT use that company, all they will do is write a letter and take 10% from you for doing so , you are perfectly capable of doing that yourself so do not use them or anyone else your "friends" may suggest

Tiffster

Thanks for the reply.

I'm a little confused.

The flat rate allowance is something like £120 per year, so this is pointless for me in my situation correct ?

I can make a claim myself to claim the tax back on the £2770 i have spent since last year then ?

I can find details on making a claim for the flat rate allowance, how do i go about making a claim myself for receipted total spend ?

Thanks

jimmo

You could write a letter or, if you prefer, complete form P87.

http://www.hmrc.gov.uk/forms/p87.pdf

Fill in pages 1 and 4 plus boxes 11 and 14 on page 4.

You should also bear in mind that you should claim what you spent between April 2011 and 5 April 2012 for the tax year 2011/12.

Any amounts you have spent since 6 April 2012 will form part of your claim for 2012/13 and you won’t be able to finalise your claim until after 5 April 2013.

However you could make an estimate now. Take a look at this for some guidance.

http://www.hmrc.gov.uk/incometax/how-to-get.htm

Form P87 is not really suitable for an estimate so, if I were you, I would do the whole thing by letter.

One big warning, tax rules require that anything you claim for has to be incurred wholly, exclusively and necessarily in the performance of your duties. Here is an example.
http://www.hmrc.gov.uk/manuals/eimanual/EIM36540.htm
I know it is standard practice for most mechanics to buy their own tools but that is not good enough to pass the “necessarily” test. If your employer supplies, or makes available, all the tools necessary for you to do your job but you prefer to use your own tools that is your personal choice, not a necessity, and your claim should be rejected by HMRC.

My own personal opinion is that the so called professional claims companies know how to work the HMRC system. They know how to make claims which HMRC will deal with under “process now, check later”.

They make your claim and take their percentage from the repayment but when HMRC come sniffing, maybe more than a year later, they are nowhere to be seen and guess who has to pay up to HMRC.