Can self-employed people claim tools and equipment?
Yes. Tools and equipment that you buy for your self-employed business can generally qualify for tax relief, provided the cost relates to the business.
The way the cost is claimed depends partly on your accounting method. HMRC distinguishes between cash-basis accounting and traditional accounting when dealing with equipment that you keep and use in the business. [oai_citation:1‡GOV.UK](https://www.gov.uk/expenses-if-youre-self-employed)
Under cash basis, most tools and equipment you buy and keep for the business are generally claimed as normal business expenses. Under traditional accounting, capital allowances may instead be needed.
What counts as tools and equipment?
The exact items depend on the type of business you operate. Common examples can include:
Hand tools
Drills, saws, spanners, screwdrivers, measuring equipment and other tools used in a trade.
Machinery
Business machinery and equipment used to carry out the activity of the trade.
Computers
Laptops, desktop computers, monitors and qualifying associated equipment used for business.
Office equipment
Printers, desks and other equipment kept for use in the business.
Specialist equipment
Equipment required specifically for your trade or profession.
Business software
Some software can be an ordinary expense while longer-term software can require different treatment under traditional accounting.
How are tools treated under cash-basis accounting?
HMRC says that when you use the cash basis, items you buy and keep for the business are generally claimed as allowable expenses in the normal way. Cars are a notable exception because separate vehicle rules can apply. [oai_citation:2‡GOV.UK](https://www.gov.uk/expenses-if-youre-self-employed)
Buying a £600 business tool
If a sole trader using cash basis buys qualifying equipment for £600 entirely for the business, that cost will generally be dealt with as an allowable business expense rather than through plant-and-machinery capital allowances.
What if you use traditional accounting?
Under traditional accounting, HMRC says capital allowances are generally used when buying equipment, machinery and business vehicles that are kept for use in the business. [oai_citation:3‡GOV.UK](https://www.gov.uk/expenses-if-youre-self-employed)
Examples HMRC specifically identifies as plant and machinery can include tools, equipment, desks and computers. [oai_citation:4‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2026)
| Accounting method | General treatment of equipment |
|---|---|
| Cash basis | Most equipment bought and kept for the business is generally claimed as a normal allowable expense. |
| Traditional accounting | Tools, machinery, computers and other equipment kept for the business are generally dealt with through capital allowances. |
What are capital allowances?
Capital allowances provide tax relief for qualifying business assets such as tools, equipment and machinery when those costs cannot simply be deducted as ordinary revenue expenses.
HMRC's 2026 Self Assessment capital-allowance guidance confirms that plant-and-machinery allowances can apply to assets bought and kept for use in a business. [oai_citation:5‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2026)
HMRC states that capital allowances cannot be claimed for a cost that has already been deducted as an allowable business expense. [oai_citation:6‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2026)
What is the Annual Investment Allowance?
The Annual Investment Allowance, or AIA, is one form of capital allowance that can allow qualifying plant and machinery expenditure to be deducted more quickly than ordinary writing-down allowances.
Whether AIA is appropriate depends on the asset and the wider capital-allowance position, so it should not be assumed that every equipment purchase uses AIA automatically.
Can you claim repairs and maintenance?
HMRC allows qualifying repairs and maintenance of business equipment as expenses. [oai_citation:7‡GOV.UK](https://www.gov.uk/expenses-if-youre-self-employed/office-property)
For example, repairing an existing piece of business equipment is generally different from buying a completely new asset.
A routine repair may be an ordinary business cost, while major expenditure that creates or substantially improves an asset can require different tax treatment.
What about replacing broken or worn-out tools?
If you replace an old tool with a new business asset, the new purchase is treated according to the accounting method and rules that apply to that asset.
It should not automatically be treated as a repair simply because the previous item was broken.
What if equipment is also used privately?
HMRC says that where something is used for both business and personal reasons, only the business element can be claimed as an allowable expense. [oai_citation:8‡GOV.UK](https://www.gov.uk/expenses-if-youre-self-employed)
Business laptop also used personally
If equipment genuinely has both business and private use, the tax claim may need to be restricted so that private use is not deducted from business profits.
Capital-allowance calculations can also require a restriction where an asset is used partly for non-business purposes. HMRC's current HS252 guidance specifically covers plant and machinery used only partly for business. [oai_citation:9‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet)
Can you claim second-hand tools and equipment?
Buying an item second-hand does not by itself prevent business tax relief.
What matters is that the expenditure is genuinely incurred for the business and that the appropriate expense or capital-allowance rules are followed.
Keep evidence of the purchase, particularly where the seller has not provided a conventional retail receipt.
What if you bought the equipment before starting the business?
HMRC's capital-allowance guidance confirms that capital allowances can potentially apply to qualifying items bought before the business started, where the asset has been provided for use in the business. The expenditure is then treated under the relevant commencement rules. [oai_citation:10‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2026)
The precise treatment depends on the circumstances, including when the asset was acquired and how it was used before the business started.
What happens when you sell business equipment?
If equipment has previously been dealt with through capital allowances, selling or otherwise disposing of it can affect the capital-allowance calculation.
HMRC's current Self Assessment helpsheet includes specific rules for disposals and balancing adjustments. [oai_citation:11‡GOV.UK](https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2026)
Knowing how an asset was originally claimed makes it much easier to deal correctly with a later sale, disposal or replacement.
What records should you keep for tools and equipment?
Keep enough evidence to show what was purchased, the cost, the business purpose and how the item has been treated for tax.
Keep the invoice or receipt
Retain evidence showing the item purchased, date and amount paid.
Record the business purpose
Make it clear why the tool or equipment is required for the business.
Record any private use
Where an asset is also used personally, keep enough information to support the business-use restriction.
Record the tax treatment
Note whether the item was claimed as an ordinary expense or dealt with through capital allowances.
For the wider business-expense rules, see our Self-Employed Allowable Expenses Guide .
Reviewed & Updated
18 August 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
The tax treatment of equipment depends on the asset, accounting basis, business use and whether a cost has already been deducted elsewhere. This guide provides general information rather than determining the treatment of a particular purchase.
Self-Employed Tools & Equipment FAQs
Can I claim tools if I am self-employed?
Yes, qualifying tools bought for the business can generally receive tax relief. The method depends partly on whether you use cash basis or traditional accounting.
Can I claim the full cost of new equipment?
Potentially, but the mechanism varies. Under cash basis, most qualifying equipment is generally an allowable expense. Under traditional accounting, capital allowances may apply.
Can I claim a laptop for my business?
A computer used for your business can potentially qualify. Any significant private use may need to be excluded or restricted.
Can I claim repairs to business tools?
Qualifying repairs and maintenance of business equipment can generally be allowable. Major improvements or the purchase of a new asset may be treated differently.
Can I claim second-hand equipment?
Second-hand equipment can potentially qualify if it is genuinely bought for the business and the appropriate tax rules are followed.
Can I claim equipment bought before becoming self-employed?
In some circumstances, qualifying equipment acquired before the business starts can still be recognised for tax purposes when it is provided for use in the business.
Can I claim capital allowances and an expense for the same item?
No. HMRC says you cannot claim capital allowances for a cost that has already been deducted as an allowable expense.
HMRC & GOV.UK Sources
This guide is reviewed against current HMRC guidance on self-employed expenses and capital allowances.
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