Claiming business expenses for work clothes
There are specific rules around claiming for work clothes as a tax-deductible expense. Any clothes which you could use for ‘everyday’ or ‘personal’ use are not an allowable expense.
If you wear a uniform for work purposes for example you’re in the beauty industry and wear a uniform for hygiene reasons then this would be classed as a tax-deductible expense. Work wear which has your logo displayed can also be claimed against your tax as this is classed as advertising your business.
In some industries it may be essential to wear protective clothing such as a hard hat, safety goggles or safety boots for instance. The cost of these items would be allowable.
If you work in theatre production for example then the costume’s which are worn by the actors would be tax deductible. This is also applicable for other industries such as entertainment.
Any clothing provided to your staff, and cleaning or repair bills which are incurred are reportable on a P11D every year and may be subject to tax and NI. This includes protective clothing as well as a uniform.
If you’re not sure about what is classed as a tax-deductible expense, always seek advice from your bookkeeper. If you make a claim which isn’t eligible for tax deduction you could be fined. You also don’t want to be missing out on vital expenses which you’re not aware of either. It’s always best to ask the question first for reassurance.
Clothing if you are a Sole Trader
The same rules apply as set out above. Clothing which is not classed as protective, is not a uniform and is without a company logo is not a business expense.
Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)