Claiming for cost of equipment used at work

Source: HM Revenue & Customs | | 26/02/2018

Employees who need to buy substantial equipment to use as part of their employment may be able to claim tax relief. In most cases you can claim tax relief on the full cost of this type of equipment as it would be eligible for a type of capital allowance called an annual investment allowance. Any tax relief would be reduced if the employer provides a contribution towards buying the item.

The way to claim tax relief depends on the amount you’re claiming for. HMRC provides the following information on making a claim:

Claims up to £2,500

You should make your claim:

  • using a Self Assessment tax return if you already fill one in
  • online or by printing and posting form P87 if you don’t already fill in a tax return
  • by phone if you’ve had a successful claim in a previous year and your expenses are less than £1,000 (or £2,500 for professional fees and subscriptions)

Claims over £2,500

  • You can only claim using a Self Assessment tax return. You will need to register if you don’t already fill in a return.

Planning note

There are different rules for employees who use their own uniforms, work clothing and tools for work. It is possible to claim for the cost of repairing or replacing small tools you need to do your job as an employee (for example, scissors or an electric drill), or cleaning, repairing or replacing specialist clothing (for example, a uniform or safety boots). A claim for valid purchases can be made against receipts or as a 'flat rate deduction'. However, an employee cannot make claim relief on the initial cost of buying small tools or clothing for work.


Latest News

Ken Dodd has the last laugh
20/03/2018 - More...
The recent death of the comedian, Sir Ken Dodd, aged 90, would not usually be the topic of one of our weekly articles. However, the comedian managed to have one last laugh by

Self-catering and holiday let business rates
20/03/2018 - More...
One important aspect of a self-catering or holiday let business that should not be overlooked, is whether or not the owner of a holiday let is liable to pay business rates.



With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login