It must say something about our personalities to make an extra effort to cover up a tiny impression in the butt of a handle on a tool. Don't get me wrong, I have a bunch of Bridge City Tool Works layout tools. I've pretty much figured out MOST of my flaws!
I still do it that way, but I part off the end with the live center indentation in it, and rely on the drive center mandrel to hold the handle steady while I sand and finish the butt end. I bought a whole index full of HSS drill blanks (1/64" to 1/2") to make mandrels in any size I might need. Lately, I had need for a 5/16" mandrel to fit a handle to a farrier's rasp. It takes a lot more work to grind a mandrel from a 5/8" ø drill blank than, for example, a 3/16" mandrel.
I use thumb tacks in the ends of tool handles. A little small but it protects the end. If you would like bigger, try furniture uphostery tacks. they have all sizes and shapes.