Can you claim the cost of work clothes on expenses?

Regardless of which sector or industry you work in, everybody has a version of a ‘work wardrobe’. This may be a version of their everyday look, a uniform, PPE or a selection of suits or smart attire.

In this guide, Michael McCullion, Managing Director of Bright Ideas Accountancy, explains how HMRC treats clothing expenses and the circumstances in which a limited company can claim tax relief.

What you can’t claim for

Work clothes are seen as having two primary functions:

• To keep you warm and to cover your modesty
• To ensure that you have the appropriate ‘look’ for your particular job

As work clothes have this dual purpose, defining what can and can’t be offset against tax becomes tricky. Wearing clothes is an everyday necessity for most of us, and most of what we wear for work we can and do wear in other contexts.

To try and make this clearer, HMRC’s rules about claiming work clothes as expenses are structured around the idea of an ‘everyday wardrobe’.

If you could include anything you wear for work as part of your ‘everyday wardrobe’, even if you choose not to wear them outside of work, these items cannot be claimed as expenses.

This means that a suit or other smart clothing isn’t allowable simply because you bought it specifically for work and never wear it socially.

If your company pays for ordinary clothing for a director or employee, it may also create a taxable benefit in kind.

You can find out more about HMRC’s interpretation of what an ‘everyday wardrobe’ consists of in BIM37910.

What you can claim for

For the small print on clothing-related expenses, first read the index page of HMRC’s Employment Income Manual EIM32450.

Uniforms

If your company requires you to wear a uniform to facilitate your job or to make it very clear exactly what you do while you are at work, any money you spend on items of uniform can be claimed back as an expense.

This is relevant to various professions such as self-employed agency nurses and private dentists.

If these uniforms need to be cleaned or repaired, it is even possible to claim these costs as expenses and receive tax relief on these payments too.

This will only apply to the uniform itself though; tax relief will not extend to accompanying items such as socks, tights or shoes. See EIM32476.

Branded clothing may also qualify in some circumstances, particularly where a company logo or business name is permanently and conspicuously displayed.

For example, T-shirts or polo shirts embroidered with the company logo may be treated as workwear rather than part of an employee’s everyday wardrobe. The position will depend on the nature of the clothing and how clearly it is identifiable with the business.

There may also be cases where branded clothing is treated as a publicity or marketing cost.

Personal protective equipment

The allowances for uniforms also apply to any personal protective equipment which is essential to keeping you safe while you carry out your job.

For example, construction businesses whose employees need to wear helmets, steel toe-capped boots and high-visibility vests on-site can claim these costs against their business tax bills.

Again, this rule does not extend to any of the clothing worn under the protective equipment, as this is not considered uniform but rather part of the employee’s everyday wardrobe. See EIM32471.

Costumes

People working in the entertainment industry can write down the cost of costumes they buy to wear on stage as expenses. These must be clothes which you can prove you would not wear in any other capacity.

The Swedish pop band ABBA famously used a similar provision under Swedish tax law. They ensured that their costumes were so outrageous that they couldn’t possibly wear them outside of performances.

This allowed them to claim tax relief against the money they paid for the costumes, which they would not have been able to do had they worn more ‘normal’ clothing. The example is illustrative only, however, as it relates to Swedish rather than UK tax law.

Work clothing expenses – further thoughts

Claiming work clothing as an expense is a grey area.

There are many types of work clothing which may not have been listed above but which could be considered legitimate business expenses.

In general, however, your scope to offset the cost of work attire is very limited – especially if you work in the professional (office) field.

If you think you may have a case for claiming work clothing as a business expense to offset your tax payments, speak to your accountant.

They will be able to advise you on your specific situation and let you know whether you can claim these expenses or not.

Read more about limited company expenses.