Introduction -when is work clothing tax-deductible
Can you claim work clothing or business clothes as a genuine business expense? In addition, when are work clothes tax deductible? Let us look into this more closely and find out when can you claim tax back on work clothes.
Whether a sole trader or running your own company, you will almost certainly buy clothes to wear for work. This could be a suit, work trousers, smart formal clothing, overalls or protective clothing, etc. Therefore, when can you claim these as part of your business expenses and will you receive a work clothes tax deduction? As this is a grey area, we will look at when clothing is tax-deductible.
As a contractor, you may be able to claim for work clothes, and please read on to see if you can do. Please note that in many instances, two expenses are often missed by contractors and small business owners alike. These are Trivial Benefits and the Annual Event (Christmas Party). There are also specific rules to follow if you plan to make company donations or give business gifts.
Is the clothing part of an everyday wardrobe
We need to think about everyday clothing when we look at whether can you claim tax back on work clothes. If your clothing is a genuine business expense, you will receive a work clothes tax deduction.
When we look at when clothes for work are tax-deductible, HM Revenue & Customs (HMRC) take their basic rule from the case of a lady barrister. She tried to claim tax relief on the dark suits that she bought to wear for court appearances. HMRC did not let her claim the tax relief. This is because she could have worn those suits on occasions that did not relate to her work. In addition, a further reason was that the rules say that clothing, by definition, has a `dual purpose.’
Therefore, any clothing that is, or could be, part of an “everyday wardrobe” is not tax-deductible.
When is work clothing tax-deductible?
The following four points are some clothing that HMRC says are specifically allowable.
Are the business clothes part of a work uniform
As part of your role, if your employer or client requires you to wear a uniform, the cost of this will be tax-deductible. Furthermore, when you wear a work uniform, it clearly shows what you do. In this case, you can claim clothing as a business expense and receive tax relief.
An example of a work uniform is that of a uniform for a self-employed nurse.
You cannot, however, claim tax relief on any clothing other than your uniforms, such as shoes or undergarments.
In addition, please note that when you are working for yourself, there can also be uniform benefits. If your customers recognise you in your work uniform, this may help generate other future sales for your business.
Forms of protective clothing
Now we turn to protective-type clothing and we will consider is workwear tax-deductible. If you need to wear chemical protective workwear or other specialised clothing as part of your day-to-day work, you are allowed to claim the cost of this. In addition to your claim for work clothes, you can also claim for any personal protective equipment that you also need as part of your job.
Protective clothing is designed to keep you safe, while you work in your chosen environment. For example, if you are a self-employed builder and you buy a helmet and protective footwear to wear while working on-site.
You may ask yourself can I buy a suit through my limited company? The simple answer here is you cannot claim for other clothing such as trousers and a shirt or pencil skirts as those will be part of your everyday wardrobe. It is only the workwear protective clothing itself that you can claim as expenses.
Costumes for entertainers
If you are a musician, actor, or another type of entertainer, you may buy clothes that are a costume. They could be “acquired for a stage, film or TV performance.” In this case, you can claim tax relief on these.
Wearing an evening dress/outfit for work
When looking at if we can claim for business clothing, HMRC gives the example of a waiter. He has to wear evening dress, including a tailcoat, for work. In this case, this is not part of an `everyday wardrobe’; therefore, he can claim this.
Please be careful in this area. The cost of buying or hiring evening dress for a business function such as an awards ceremony would not receive tax relief. This difference is because attending these functions is unnecessary for you to do your job. Compare this to the waiter serving you; it is a key part of his job.
If your work clothing is tax deductible
After considering the above, if your clothes for work are tax deductible, you can also claim for repairing or replacing these as and when the need arises.
When you can claim your clothing during the tax year, you should obtain a receipt for it. Nowadays, many retailers will ask you for your email address. Once you give this to them, they will email the receipt to you to save on paper.
Claiming tax relief for work clothing when it is tax-deductible
If you own your own company and your clothing is allowable under the above guidelines, you can claim these as an expense through your company. As a result, this will help save company tax.
Alternatively, those self-employed will claim for their tax-deductible work clothes through their Self-Assessment tax returns. In turn, this will help lower their tax bills.
On the other hand, those employed will also claim for their tax-deductible work clothes through their Self-Assessment tax returns. In return, this will usually result in tax refunds for them.
When we consider when are work clothes tax deductible, this is another one of those grey areas. It is indeed not always clear what you can claim for your business clothing. Therefore, the above shows a good summary of what to bear in mind when you consider if your work clothing is tax-deductible.
Please also have a read of the article covering tax tips for contractors.
Link to Contractor Advice UK group on