Can I claim expenses for business-related equipment repairs?

Understanding what “business-related equipment repairs” means

When people ask, “Can I claim expenses for business-related equipment repairs?” they’re usually trying to work out whether the money they spent fixing something counts as a legitimate business cost for tax purposes. In everyday terms, if the repair helps you keep your business equipment working so you can earn income, it often feels like it should be claimable. The key is that tax rules don’t treat every type of fix in the same way. Some repairs are treated as ordinary running costs, while other work is treated as an improvement to the asset—more like buying or upgrading equipment—which is handled differently.

“Equipment” can include a surprisingly wide list of items: laptops, phones, cameras, machinery, vehicles used for work, tools, printers, POS terminals, industrial equipment, medical devices, musical instruments used professionally, and more. A “repair” usually means restoring something to its previous condition so it can do what it’s supposed to do. That might be replacing a worn part, fixing a broken component, restoring a damaged casing, recalibrating a machine, or paying labour to diagnose and fix a fault.

At the centre of the question is a simple principle: expenses that are incurred wholly and exclusively for business purposes are more likely to be allowable than those that are personal, mixed, or capital in nature. But real life is messy. Many people use the same items for work and personal life, and many repairs both restore and improve. That’s why it helps to break the question down into categories and apply a few practical tests.

The short answer, explained properly

In many common situations, yes: you can claim the cost of repairing business equipment as a business expense if the repair is an ordinary and necessary cost of keeping the equipment usable for your work. If a laptop used for your business stops charging and you pay for a new charging port, that’s typically a repair. If a delivery bike used for your business needs new brake pads and a service, that’s typically a repair. If a commercial printer needs a replacement roller and a technician call-out, that’s typically a repair.

However, the “yes” comes with important caveats. Repairs that are really upgrades, improvements, or part of a larger project to materially enhance the equipment may be treated differently (often as a capital cost rather than a day-to-day expense). Repairs to equipment that is used partly for personal purposes may need to be apportioned. And repairs that are reimbursed (for example by insurance, warranty, or a client) may not be fully claimable, or may need to be handled net of reimbursements.

So the better framing is: you can often claim repairs that restore equipment to working condition for business use, but you need to consider whether the expense is a repair versus an improvement, whether the equipment is used solely for business, and whether there are special rules for certain asset types.

Repair vs improvement: the distinction that changes everything

One of the most important distinctions is whether what you paid for is a repair (revenue expense) or an improvement (capital expense). A repair generally restores an item to its previous working order. An improvement generally makes the item better than it was when you started—adding capacity, extending its useful life significantly, or materially changing its function.

Here are some examples that are usually considered repairs:

Replacing a cracked laptop screen with the same type of screen; fixing a broken hinge; replacing a worn fan; repairing a camera shutter; changing a faulty motherboard with a like-for-like part; repairing a machine’s worn belt; re-soldering a broken connection; servicing equipment to address wear and tear; fixing water damage to return the item to working condition (assuming it doesn’t involve a major upgrade).

And here are examples that can look like repairs but may be improvements:

Upgrading a computer from 8GB to 64GB RAM as part of the “repair”; replacing a basic hard drive with a top-tier high-capacity SSD that transforms performance; converting an analogue system to a digital system; adding new features or modules not previously present; rebuilding equipment in a way that significantly extends its life beyond ordinary maintenance; reconfiguring a machine to do additional tasks; replacing a large proportion of the asset’s major components so the end result is effectively “new.”

In real life, many invoices include both elements: a repair plus an upgrade. If you replace a failing battery in a phone used for work, that’s a repair. If you simultaneously pay for a higher-spec battery that increases capacity beyond the original design, you may have a mixed cost. The safest approach is to separate the invoice lines where possible, and claim the repair element as an expense while treating the improvement element according to the rules for capital items.

Why “capital” treatment isn’t necessarily bad

People sometimes panic when they hear that a cost might be capital rather than an immediate expense. But capital treatment doesn’t automatically mean “you can’t claim it.” It often means the deduction is claimed differently—typically spread over time through depreciation or a capital allowance regime, depending on where you are and what system applies to you.

For example, if you do work that significantly improves an asset, tax rules may require you to add that cost to the asset’s value and claim it through capital allowances. That can still produce a deduction; it’s just not always taken in one go as a simple repair expense. The practical impact is timing, paperwork, and record-keeping. In some tax systems, there may also be immediate expensing or accelerated allowances for certain assets, which can reduce the difference in outcomes.

The big takeaway is: the repair vs improvement test is about classification, not about whether the cost is “allowed at all.” If you’re unsure, consider whether the work merely restores function, or whether it materially changes what the asset is or how long it will last. When it’s genuinely mixed, separate the components where you can.

Wholly and exclusively: the business-use test

Even if a cost is clearly a repair, it still needs to meet the business-use test. In many tax frameworks, the phrase “wholly and exclusively for business” is used (or an equivalent concept) to determine whether an expense is deductible. If the equipment is used solely for business, repairs to that equipment are easier to justify as business expenses. If the equipment is used partly for personal reasons, you may only be able to claim the business proportion.

Consider a laptop used 70% for client work and 30% for personal streaming and household use. If the laptop breaks and you pay for a repair, it may not be reasonable to claim the full cost as a business expense. A common approach is apportionment: you claim the portion that reflects business use. Some people find this uncomfortable because the repair was necessary for work, but the reality is that the asset serves both roles, so the cost is shared.

Apportionment becomes especially relevant with phones, vehicles, and home-office-related equipment. The more mixed the use, the more important it is to have a consistent method for working out business percentage. Consistency matters. If you claim 90% business use for a phone repair but only 20% of the phone plan as business, that inconsistency can raise questions.

Common scenarios, and how they’re typically treated

Let’s walk through a few realistic examples to show how the logic works.

Scenario 1: A tradesperson’s tools need repair

A self-employed electrician has a drill that stops working. The repair shop replaces the chuck and motor brushes and charges for labour. The drill is used for work only. This is a classic repair: it restores the drill to working condition and is directly connected to earning business income. It’s typically treated as an allowable business expense as part of the running costs of the trade.

Scenario 2: A designer upgrades while repairing

A graphic designer uses a computer primarily for work, but also for personal use. The computer is slow and sometimes crashes. They take it to a technician who replaces a failing drive and also upgrades the memory. If the drive replacement is like-for-like and resolves a fault, that portion looks like a repair. The memory upgrade looks like an improvement. The designer may need to apportion for personal use and also separate the upgrade portion for capital treatment, depending on their tax system and thresholds.

Scenario 3: A restaurant fixes a commercial fridge

A restaurant pays for a call-out to fix a compressor issue in a commercial fridge. The fridge is a business asset used to store food inventory. The work restores function; it doesn’t upgrade the fridge to a new capability. This is typically a repair expense, claimable as part of day-to-day business running costs.

Scenario 4: A photographer repairs a camera after accidental damage

A photographer drops a camera used for client shoots. The lens mount is damaged and the camera won’t focus. The repair shop restores it. If the camera is used for business, the repair is generally connected to business operations. If insurance pays out, the handling may differ (you may claim the expense but also account for the reimbursement), and you’ll want clear documentation showing what you paid and what you recovered.

Scenario 5: A vehicle used for deliveries needs repair

A courier uses a car for deliveries but also for personal errands. The car needs new tyres and a brake repair. These costs are maintenance and repairs. In many systems, if the vehicle is used partly for business, you claim the business proportion (often based on mileage logs or a consistent business-use method). If you’re using a simplified method that already accounts for vehicle costs, you might not separately claim repairs. The correct approach depends on how you’re claiming vehicle expenses overall.

Repairs to leased or rented equipment

Not all equipment is owned. Many businesses lease machinery, rent specialist tools, or use subscription-style hardware services. Whether you can claim repairs depends on who is responsible under the agreement. If the lease contract says the leasing company covers repairs and you pay nothing, there’s no repair expense to claim. If the agreement makes you responsible for maintenance or certain repairs, those payments may be business expenses if they’re incurred for business use.

A common setup is that routine servicing is the renter’s responsibility, while major repairs are the owner’s responsibility. Another common setup is a “maintenance inclusive” contract where your lease fee covers servicing and repairs. In that case, you may claim the lease fee according to the business-use rules, and you won’t usually have separate repair invoices unless there are excess charges or damage fees.

Warranty repairs, insurance claims, and reimbursements

Warranty and insurance situations can complicate the story, but the basic concept is straightforward: you generally can’t claim a deduction for an amount you didn’t actually bear as a cost, and you may need to consider any reimbursements you receive.

If your equipment is repaired under warranty at no charge, there’s no deductible repair expense because you didn’t pay it. If you pay a portion (such as shipping, diagnosis fees not covered, or an excess), that portion may be deductible if it relates to business equipment and qualifies as a repair.

If insurance reimburses you for the cost of a repair, the net economic cost to your business may be reduced. Depending on local rules, you might record the repair expense and record the insurance reimbursement as income or as an offset, leading to the correct net effect. What matters is that your records clearly show what you paid, what you were reimbursed, and the timing of both.

Be careful with client reimbursements too. If you bill a client for a repair to a piece of equipment you used on their project, you need to record both sides properly. Often you’d record the repair expense and then record the reimbursement as income, rather than claiming an expense that someone else ultimately paid.

What counts as a repair cost?

Repairs aren’t only the cost of parts. They can include several related costs that are part of fixing equipment for business use.

Typical repair-related costs can include:

Labour charges from technicians or repair shops; call-out fees; diagnostics and inspection fees; replacement parts; shipping or courier costs to send equipment to a service centre; calibration fees; cleaning and servicing costs tied to restoring functionality; software reinstallation or configuration fees when tied to a repair; specialist testing.

However, certain add-ons might not qualify in the same way. For example, if you pay for an extended warranty at the same time as a repair, the warranty is a separate cost with its own treatment. If you buy accessories during the repair visit (a new case, upgraded peripherals), those are separate purchases, not repair costs. Keeping invoices itemised helps avoid confusion later.

Repairs vs maintenance: are they treated differently?

Maintenance is usually the routine work you do to prevent breakdowns—servicing, cleaning, replacing consumables, and minor adjustments. Repairs are what you do after something breaks or malfunctions. In many tax systems, both maintenance and repairs are treated as operating expenses, provided they relate to business equipment and are not capital improvements.

Examples of maintenance include regular servicing of machinery, cleaning of commercial equipment, routine lubrication, replacing filters, sharpening blades, replacing worn belts, and safety inspections. These costs are typically seen as ordinary and recurring. They can often be easier to support as business running costs because they’re part of standard operations.

The main time maintenance starts to look “capital” is when it’s performed as part of a substantial refurbishment or overhaul that essentially rebuilds the asset or extends its life in a major way. Again, context matters: replacing one worn part is maintenance; replacing half the machine and upgrading its capabilities may be a capital refurbishment.

How to handle repairs to equipment that you use at home

Many modern businesses operate from home or use home-based equipment for business: a laptop, printer, router, monitor, phone, microphone, and even furniture. Repairs to those items can be deductible if the items are used for business and the repair is an allowable type. But home-based equipment often has mixed personal use, so apportionment is commonly required.

Take a home printer used for invoices and shipping labels, but also used for school forms and personal documents. If it needs a repair, you might claim the business portion based on a reasonable estimate of business use. If your home internet router needs repair or replacement, it becomes trickier because the internet connection is almost always mixed-use. The key is to use a consistent method and keep a note explaining how you calculated the business percentage.

Also consider whether the “repair” is actually a replacement. If the router can’t be economically repaired and you buy a new one, that’s a new asset, not a repair expense—though it might still be deductible under capital rules. Don’t force a repair classification if what you actually did was replace the equipment.

Repairs when you’re just starting out

Startup periods can create confusion: what if you repair equipment before you’ve made any sales? For example, you buy a second-hand machine, repair it, then launch your business. The treatment may depend on whether the repair is part of putting the asset into a usable condition for the first time in your business (which can lean capital) or whether it’s a normal repair to an already-in-use business asset.

Conceptually, if an item needs work to make it usable when you first bring it into the business, that work can sometimes be viewed as part of the cost of acquiring and preparing the asset for use. That tends to align more with capital treatment. Once the equipment is already in business use, subsequent repairs and maintenance are more clearly operating expenses.

In practice, keep good notes: when did the business begin trading, when was the equipment first used in the business, what was the condition at acquisition, and what did the repair do? Clear documentation makes classification easier.

Repairs to assets you personally owned before using them for business

Suppose you owned a laptop personally, then later started freelancing and began using that laptop for business. If you repair it after you start using it for business, the repair may be partly claimable based on business use. If you repair it before you ever use it for business, the connection to business is weaker, and the repair may be personal.

When an asset transitions into business use, it’s helpful to document the date you started using it for business and the estimated percentage of business use. From that point, repairs tied to keeping the asset functional for the business can be apportioned accordingly. But the history of the asset can matter in how tax authorities view the initial costs versus ongoing costs.

Repairs and “incidental private benefit”

Some expenses have a business purpose but also create personal benefit. For repairs, that benefit often arises when the asset is mixed-use. A phone repair improves your ability to work and your ability to use the phone personally. The solution is usually apportionment, not disallowing the expense entirely.

The key is to avoid claiming costs that are clearly personal. If you repair a gaming console and claim it because you occasionally use it to relax between projects, that’s not a business repair. Similarly, repairing a personal bicycle because you sometimes think of work while riding it does not make it a business expense. The business link needs to be genuine, and your records should reflect that.

Record-keeping: what you should keep and why it matters

If you want to claim repair expenses confidently, good records are your best friend. The goal is to be able to show what was repaired, why it was necessary for business, when the expense was incurred, and how you handled any personal-use portion or reimbursements.

At a minimum, keep:

The invoice or receipt showing the supplier, date, description of work, and amount; proof of payment (bank statement or card receipt); notes on the equipment’s business use (especially if mixed); any correspondence related to the repair (emails authorising work, diagnostic reports); warranty or insurance documentation if relevant; records supporting apportionment (such as usage logs or a consistent business-use estimate).

Try to ensure that the invoice description is specific. “General service” is less helpful than “Replace charging port and test laptop” or “Repair compressor and re-gas refrigeration unit.” If the supplier’s invoice is vague, you can add your own note for your records describing what was done and why it was needed for business operations.

How to apportion repairs for mixed-use equipment

Apportionment sounds intimidating, but it’s often just a reasonable percentage applied consistently. The method should reflect reality and be supportable if questioned.

Some common ways to determine business percentage include:

Time-based usage estimates (e.g., laptop used 30 hours per week for business and 10 hours personal = 75% business); activity-based estimates (e.g., phone calls or data usage split between business and personal); mileage logs for vehicles; device profiles or separate user accounts that track business usage; consistent categorisation of certain days or periods as business-use heavy.

Whichever method you use, document it. A short note such as “Laptop estimated 80% business use based on weekly hours: ~32 hours business, ~8 hours personal” can be enough. Then apply that percentage to repairs and other related costs. Consistency is important: if your laptop is 80% business for repairs, it likely should be roughly similar for software subscriptions that relate to the same device.

When a “repair” is actually a replacement

Sometimes the equipment is damaged beyond practical repair, or the repair cost is close to the cost of buying a new item. In that case, you might replace it. Replacement is not a repair expense, even if it feels like one because the purchase was prompted by a breakdown.

For tax purposes, buying a new item is usually treated as acquiring an asset. The cost may still be deductible, but usually through capital rules. There may also be thresholds that allow smaller purchases to be expensed immediately. But the classification matters: if the receipt is for a new laptop, don’t label it as “repair.” Your bookkeeping should reflect what actually happened.

There can be grey areas, like replacing a major component that is effectively the “heart” of a machine. If you replace a motherboard in a laptop, is that a repair or essentially a rebuild? Often it’s treated as a repair if it restores the same functionality. But if the replacement substantially changes the specification or extends life far beyond ordinary repairs, it could lean capital. The more major the component, the more you should rely on documentation and the nature of the work.

Industry-specific nuances

Different industries encounter different types of equipment and repair patterns, which can influence how you document and justify costs.

Creative and digital work

For designers, developers, marketers, and content creators, equipment repairs often relate to computers, cameras, microphones, and phones. These items are frequently mixed-use. The biggest pitfall is claiming 100% of repairs when there’s clear personal use. Another pitfall is bundling upgrades into repairs and treating the whole invoice as a repair expense. If your repair invoice includes new higher-end parts, separate them if possible.

Construction and trades

Trades tend to have clearer business-only tool use, which makes repair claims more straightforward. However, trades also often have expensive equipment that can be refurbished or rebuilt. Larger rebuilds can start to look like capital improvements. Keeping service records and notes about what was done helps show whether the work was routine maintenance or a major upgrade.

Hospitality and retail

Restaurants and retailers often repair refrigeration, ovens, coffee machines, POS equipment, and display systems. Many of these repairs are clearly part of day-to-day operations. The key is to maintain detailed invoices and to note whether work is restoring function or replacing equipment. When repairs are frequent, it can help to track them by asset to show a normal pattern of maintenance.

Healthcare and professional services

Specialist equipment may require calibration, certification, and regulated servicing. These costs are often part of maintaining the equipment’s safe operation. Keep certificates and service reports; they support the business necessity of the expense.

Practical tips to make your claim smoother

Even if the rules in your location differ in detail, these practical steps tend to reduce headaches:

Get itemised invoices whenever possible; separate repair work from upgrades; keep a short note explaining business purpose; use one consistent method for business-use percentages; record reimbursements clearly; avoid “round number” estimates that look invented; keep service logs for high-value equipment; store receipts digitally and back them up.

If you’re dealing with expensive repairs, consider keeping a brief asset record: purchase date, cost, business-use percentage, major repairs, upgrades, and disposal date. This makes it much easier to justify classification and track the life of the asset.

Questions to ask yourself before claiming a repair

When you’re unsure, run through a few quick questions:

Was the equipment used for business at the time of the repair? Did the work restore the item to its previous condition, or did it make it better than before? Is the equipment used partly for personal reasons, and if so, what’s a reasonable business-use percentage? Did anyone reimburse you, such as insurance or a client? Does the invoice clearly describe repair work, or does it include new equipment purchases? Are you using any simplified expense method that already covers repairs?

Answering these questions and writing down a short summary can turn a confusing decision into a clear, defensible approach.

Potential red flags that can cause trouble

Some patterns are more likely to invite scrutiny or lead to errors in your accounts.

Claiming 100% of repairs on equipment that is obviously mixed-use, like a personal phone; treating a major upgrade as a repair; claiming repairs on an item that wasn’t used in the business; claiming the same cost twice (once as a repair, once as part of an asset schedule); not accounting for reimbursements; using vague descriptions like “misc repairs” without receipts; repeatedly claiming repairs for an asset that is effectively being rebuilt each year, which can look like a capital refurbishment.

Most of these issues are solved by better documentation and more careful classification. The goal isn’t to be overly cautious; it’s to be accurate and consistent.

How repairs interact with your overall accounting method

Your accounting method can affect how you track and claim repairs. Some businesses use cash accounting (recording expenses when paid), while others use accrual accounting (recording when incurred). Repairs generally follow your chosen method. What matters is that you match the repair cost to the correct period and keep records that align with your method.

Also consider whether you’re using simplified expense schemes or flat-rate deductions. In some systems, simplified schemes replace detailed expense claims for certain categories. If you’re using such a scheme for vehicles, for example, you might not separately claim repairs. The right answer depends on the scheme’s rules, so it’s important to ensure you’re not double counting.

So, can you claim expenses for business-related equipment repairs?

In many cases, yes. If you repair equipment that your business uses to earn income, and the work restores the item to working condition without materially improving it, the cost is commonly treated as a deductible business expense. If the equipment is mixed-use, you’ll usually need to claim only the business portion. If the work includes upgrades or significant improvements, you may need to split the cost or treat it as a capital expense.

The most reliable approach is to classify the cost honestly (repair vs upgrade), connect it clearly to business use, keep itemised documentation, and apply consistent apportionment where needed. Do that, and you’ll be in a strong position to claim legitimate repair expenses while avoiding the common mistakes that cause problems later.

Final checklist you can use right away

Before you file or finalise your accounts, run this checklist:

1) I have an invoice/receipt and proof of payment. 2) The item is used for business (and I can explain how). 3) The work restores function rather than materially improving the asset. 4) If there’s personal use, I’ve applied a reasonable business-use percentage. 5) I’ve separated upgrades, new accessories, and extended warranties from repair costs. 6) I’ve accounted for reimbursements from insurance, warranty, or clients. 7) My treatment is consistent with how I claim related costs for the same asset.

With that, you can answer the original question with confidence: business-related equipment repairs are often claimable, but the details—especially repairs vs improvements and business vs personal use—determine how you claim them.