What is tools tax relief?
PAYE tools tax relief is employment-expense relief that may be available where an employee personally incurs qualifying costs associated with small tools needed to perform their job.
HMRC's public guidance specifically refers to the cost of repairing or replacing small tools needed for employment.
If your job requires certain small tools and you personally pay qualifying repair or replacement costs without full employer reimbursement, you may be able to claim Income Tax relief.
Who can claim tax relief for tools?
HMRC's general employee expense conditions mean that the cost must genuinely fall on you as an employee.
A claim may be possible where:
- You need the tools to perform the duties of your job.
- You personally bear the qualifying cost.
- Your employer does not fully reimburse you.
- The expenditure satisfies the employment-expense rules.
- You have paid Income Tax in the year for which relief is claimed.
HMRC's general guidance does not allow a claim simply because you prefer your own equipment when the employer already provides an adequate alternative.
What does HMRC mean by small tools?
HMRC's public guidance gives examples such as scissors and an electric drill.
Depending on the occupation, examples can include items such as:
Hand tools
Spanners, screwdrivers and similar loose tools where the employment conditions for relief are satisfied.
Portable power tools
Certain portable tools such as drills can fall within HMRC's small-tool guidance.
Scissors
HMRC specifically uses scissors as an example of a small tool that may be required for employment.
Occupation-specific tools
Other loose tools may qualify depending on the duties of the occupation and who bears their upkeep.
Can employees claim the cost of repairing tools?
HMRC expressly includes the repair of qualifying small tools in its employee expense guidance.
A repair cost is most straightforward where:
- The tool is required for the job.
- You bear the repair cost personally.
- Your employer does not reimburse it.
- The repair relates to the qualifying employment tool.
Can you claim replacement tools?
HMRC also refers to replacing small tools needed for the job.
This can be relevant where a work tool becomes worn out, damaged or otherwise needs replacing and the cost falls on the employee.
Repair and replacement are central to the PAYE tool rules
The employee flat-rate expense system was developed largely to cover average annual expenditure on maintaining and renewing loose tools and special clothing.
Can you claim the initial cost of buying tools?
Employee tool claims are more restrictive than self-employed business expense claims.
HMRC's public tools guidance focuses on repairing and replacing small tools. The initial purchase of equipment can fall under different employment-expense and capital allowance rules rather than being automatically deductible as an ordinary job expense.
Whether an initial equipment purchase qualifies depends on the specific employment tax rules. A purchase is not automatically allowable merely because you use the item at work.
What if your employer provides or pays for the tools?
If your employer provides all of the tools required for your job, the employee normally has no qualifying tool expense to claim.
Similarly, where your employer reimburses the full qualifying expense, HMRC does not allow you to claim the same cost again.
| Situation | General position |
|---|---|
| Employer provides required tools | Normally no employee expense for those tools. |
| Employer reimburses the full cost | Normally no further employee deduction for that expense. |
| Employer reimburses part | Any permitted deduction is reduced to reflect the amount paid by the employer. |
| Employee bears qualifying cost | Relief may be available subject to the employment-expense conditions. |
What are HMRC flat-rate expenses for tools?
HMRC has nationally agreed flat-rate deductions for many occupations where employees commonly incur qualifying expenditure on tools and special clothing.
These amounts are intended to represent average annual deductible costs, reducing the need for employees to calculate every small repair or replacement individually.
There is no single universal tools allowance. HMRC's published table contains different amounts for different industries and occupations.
For example, HMRC's current table contains specific agreed rates for many constructional engineering, electrical, engineering and other manual occupations.
Can you claim actual tool costs instead of the flat rate?
Yes, where the expenditure itself is deductible.
HMRC says an employee is not disadvantaged by a flat-rate expense because actual qualifying expenditure can be claimed instead.
Choose the appropriate basis — do not duplicate the same expense
If you claim actual qualifying costs, you need evidence. A flat-rate claim generally avoids the need to prove each individual item covered by the agreed amount.
How much tax relief could you receive?
£120 qualifying flat-rate expense
Income Tax rate: 20%
Illustrative tax relief: £24
The employee receives tax relief on the allowable amount. HMRC does not simply pay the full £120 as a refund.
What about larger equipment?
Larger equipment and assets can fall outside the straightforward small-tool repair and replacement rules.
HMRC has separate employment rules for capital allowances on equipment employees must provide for use in their duties.
If the purchase is a substantial item rather than normal loose tools, the correct claim may require considering HMRC's separate equipment and capital allowance rules.
What if a tool is also used privately?
HMRC's general job expense guidance requires the relevant item to be used for work under the conditions of the employment expense rules.
Significant personal use can therefore make a straightforward employee tools claim more difficult and may prevent the full cost from satisfying the relevant conditions.
How do employees claim tools tax relief?
HMRC provides an online job-expense service through which eligible employees can check and submit claims.
Where an employee completes a Self Assessment tax return, HMRC requires the employment expense to be claimed through the return instead.
Check the tool is required
Confirm that the tool is genuinely needed to perform your employment duties.
Check who bears the cost
Identify whether you personally paid the qualifying repair or replacement cost without full reimbursement.
Check for a flat rate
Look at HMRC's occupation list to see whether an agreed annual rate applies to your job.
Claim through the correct route
Use HMRC's job-expense service or your Self Assessment return where applicable.
Can you claim for earlier tax years?
HMRC's current uniform, clothing and tools guidance allows eligible claims for the current tax year and the previous four tax years.
You must have paid Income Tax in the relevant year, and relief cannot exceed the tax you paid for that year.
Do you need receipts for tool claims?
If you claim actual qualifying expenditure, HMRC requires evidence that you paid the cost.
If you use a nationally agreed flat-rate expense, HMRC says you do not need to send receipts for the individual items covered by the flat rate.
Records should identify the tool, the repair or replacement cost, when you paid it and why it was required for your job.
Reviewed & Updated
18 August 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
Employee tool expense rules are more restrictive than self-employed business expense rules. Relief depends on the employment duties, the nature of the expenditure, whether the employee bears the cost and whether a nationally agreed flat-rate expense applies.
Tools Tax Relief FAQs
Can employees claim tax relief for tools?
Potentially. HMRC allows relief for qualifying costs of repairing or replacing small tools needed for employment, subject to the normal employee-expense conditions.
Can I claim for an electric drill?
HMRC specifically gives an electric drill as an example of a small tool that may fall within the employment tool expense rules.
Can I claim the cost of replacing worn-out tools?
Replacement of qualifying small tools can potentially be deductible where you need the tool for your job and personally bear the cost.
Can I claim if my employer gives me tools?
If your employer provides everything required, you normally have no employee tool expense to claim for those items.
What if my employer pays part of the cost?
HMRC reduces the permitted deduction to reflect employer reimbursement or contributions.
Is there one standard tool allowance for everyone?
No. HMRC has different nationally agreed flat-rate expense amounts for different industries and occupations.
Can I claim actual tool costs instead of a flat rate?
Yes, where the actual expenditure meets the deduction conditions. You will need evidence for an actual-cost claim.
How far back can I claim?
HMRC currently permits eligible claims for the current tax year and the previous four tax years.
HMRC & GOV.UK Sources
This guide is reviewed against current HMRC employment-expense guidance for employee tools and flat-rate deductions.
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