3 HMRC Allowable Expenses every trade needs to claim before April 5th this year.
Do you want to reduce how much of your hard-earned cash you give to HMRC?
Then follow the TF Tools Tax Saving Guide! We’ve shared 3 smart tax moves that maximise your allowable expenses and lower your taxable profit, meaning a lighter tax bill and more incredible TF gear in your kit.
1. Annual Investment Allowance
Tools are essential for any trade. Under the Annual Investment Allowance (AIA), you can usually claim 100% of the cost of tools in the year you buy them. This applies to any essential tool – be that a run-of-the mill version, or the highest-quality, precision-engineered premium tools you’ll find here at TF Tools. This means that upgrading to premium kit such as a Martinez Titanium Hammer or a TrigJig Square isn’t just the upgrade you deserve after working hard all year - it’s a tax win.
The limit is massive - for the 2025/26 tax year, the Annual Investment Allowance (AIA) is £1 million, so unless you’re planning on buying enough Martinez hammers to fill an aircraft hanger, you’re likely well within the limit.
What are Capital Expenses & how can I utilise them?
A note on capital expenses – these come under your Annual Investment Allowance, however they are listed in a different box on your tax return.
A capital expense is when you buy something that’s going to help your business for a long time (usually more than two years). You could count a van, a laptop, a Martinez Hammer or a high-end toolbelt rig as a capital asset.
2. Wholly & Exclusively Workwear & PPE
You can't claim for your everyday jeans, even if you only wear them on-site. But HMRC are very clear that you can claim for on Protective PPE and Specialist Load-Carrying Equipment that you can claim for:
- Toolbelts & Rigs: These are a physical necessity for the job. They are 100% claimable as 'specialist workwear' or equipment. While these are workwear, a high-end system like Badger or Buckaroo Toolbelts are technically Capital Assets because they last for years. This means you can claim 100% of the cost through your Capital Allowances.
- Protective Clothing: HMRC recognise that safety gear is essential for trades. This includes items such as safety hats, work gloves, and glasses. Everything from our PPE collection fall squarely into this category, such as our super-popular Mufftech Bluetooth Ear Defenders or our Lift Safety hats, knee pads & gloves.
- Branded Uniform: Anything featuring a permanent company logo.
There is no upper limit on the amount you can spend in this category, provided the gear is exclusively for work and doesn't have a 'dual use.' – as HMRC is strict on this and your claim might be rejected.
3. Consumables & Professional Fees
Don’t ignore the small wins. These recurring costs add up fast:
- Consumables: Pica Markers, refills, and driver bits are ‘revenue expenses.’ They are used up quickly in the trade and should be claimed in full.
- Professional Subscriptions & Insurance
There is no limit here to how much you can claim here.
Just a heads-up: while we know our way around a pry bar and a tool pouch, we aren't tax advisors or accountants. We’re just here to help you get the best kit for the job.
Tax laws can be complex and vary depending on whether you’re a sole trader, limited company or employee, so always double-check your specific situation with a qualified accountant before you submit that return. Don't blame us if the taxman doesn't share our enthusiasm for premium tools!
Written by Team TF
Team TF is made up of product specialists dedicated to offering genuine expert advice before you buy and renowned after-sale care including warranty management. No one knows tools and toolbelts like we do (but we accept, plenty know tax better than us)! Get in touch if you have any questions at all about the brands and products we stock.
