Can I Claim Clothes and Uniforms as an Expense?

The general rule for claiming any business expense is that it must be “wholly and exclusively for business”, which can include clothes and uniforms depending on what they’re used for. Things get a bit more complicated if those items could also be used in your personal life, so in this article we’ll explain HMRC’s confusing rules for claiming clothing expenses.

What does HMRC consider to be a ‘uniform’?

HMRC is quite specific about what it considers to be a uniform: Basically, it needs to be a specialised piece of clothing that clearly distinguishes someone’s occupation.

On that basis you could sew a permanent badge or logo onto a garment, and that’s enough to call it a uniform for tax purposes. Simply pinning a detachable badge on doesn’t cut it unfortunately, but the important thing is that someone on the street could easily identify your occupation and/or the organisation you work for.

But, you’ll only be able to claim tax relief on the cost of the uniform if:

• You’re self-employed and bought it for work
• You bought the uniform yourself and your employer has not reimbursed you (you might also be able to claim tax relief on the cost of washing it!)

Clothing expenses: The three golden rules for claiming

There are three broad categories to consider when claiming clothing as an expense in your business; branding, costumes, and personal protective equipment.

Part of a uniform has your branding on it

There are some professions which we typically associate with wearing a uniform, such as nursing, firefighting, or the police. Plenty of other organisations also require employees to wear a uniform as part of the brand’s image though, so clothing with the company logo is also allowable. The branding or logo must be obvious, and it can’t be easy to remove or hide.

A costume

Should you ever find yourself dressing up as a pizza to promote your takeaway food business, you can breathe a sigh of relief. You’ll be able to claim for your attire as it clearly constitutes a costume. Other examples include an actor’s costume for a stage production, or a suit for a professional clown or magician.

Personal protective equipment (PPE) clothing

The nature of your work might make it necessary to wear PPE to protect yourself from injury or infection. For instance, helmets, eyewear or other equipment are all an allowable expense.

What clothes can’t you claim for as a business expense?

The common theme here is that you can only claim for clothing if you’re able to demonstrate it’s solely for work. HMRC take a hard line against dual usage in expenses and business costs.

There are some grey areas though. For example, HMRC argue that fitness instructors or personal trainers could use the clothing they need for work for their own personal workouts. This would exclude it from being an allowable expense as far as HMRC are concerned.

If it clearly shows the business logo and branding, and is only worn to teach those particular classes, then it’s allowable. The difficulty here might be proving it one way or another. Other examples of clothes that you can’t claim for include:

• ‘Everyday’ clothes, even if you know you keep them for work and work only. This could apply to professions such taxi drivers, dog walkers, or freelance wedding photographers who set smart clothes aside for when they’re on duty.
• Your favourite pyjamas and comfiest slippers, just because that’s what you like to wear when you’re working from home

How do I claim a uniform against tax?

The process for offsetting uniform and clothing costs against your tax bill depends on whether you’re claiming as an employee or as someone who is self-employed.

If you’re an employee

As an employee you’ll have already paid the tax through PAYE, so you’ll be claiming some of that back as a refund.

You can apply online by filling in form P87, or by post. Send it to: Pay As You Earn, HM Revenue & Customs, BX9 1AS and include ‘Repayment Claim’ on the envelope.

If you’re still working then HMRC will usually adjust your tax code (so you won’t pay as much tax every month), rather than just sending you the money.

Is there a flat rate for uniform expenses?

Some employees can work out their claim using a flat rate set by the government. This makes the process of claiming the relief a lot easier because it doesn’t rely on you keeping records!

The rate depends on your job title and industry so we’ve given a few examples below, or you can find the full list of occupations on the gov.uk website:

• Agriculture: £100
• NHS staff, including ambulance staff, nurses, midwives, and dental nurses: Up to £185
• Airline staff, such as pilots and co-pilots: £1,022
• Heating engineers and plumbers: Up to £120
• Public transport workers, including drivers and conductors: Up to £60
• Printing, including bench hands, ink and roller makers and machine minders: Up to £60
• Clothing, including knitters, lace makers and dyers: £60
• Forestry workers: £100

Some occupations can understandably claim for additional pieces of clothing over and above their standard uniform. This is allowed by HMRC and is simply due to the nature of the work staff have to carry out. For example, ambulance staff can claim for specialist uniform while nurses and midwives can claim for socks, tights, and shoes.

If you’re self-employed

You can claim it through your tax return as an allowable business expense, which will reduce the profit figures you report, and therefore reduce your tax bill.

Can I claim uniform tax relief for previous years?

Yes, uniform tax relief can be claimed for up to the previous four years, even if you’ve moved jobs and no longer work for that particular employer.

I’m self-employed. Can I claim anything to help with the cost of washing my uniform?

This is something we get asked quite a bit. As we’ve already covered, if you’re self-employed you can claim the cost of buying uniform as a business expense through your tax return.

If you can also work out how much each wash of your uniform costs (water, electricity cost, detergent etc) then you may be able to include washing it as a business expense too.

However, most people just use the flat rate instead as it’s much easier. If you’re not sure, seek professional advice from an accountant who can help you.

Which industries can claim laundry expenses?

Pretty much any job or industry where you’re required to wear a uniform can attract a claim to help with the cost of washing it. We’re not talking megabucks here, but let’s face it, in these times of soaring utility bills every little helps.

Obviously, some industries are heavier claimers than others when it comes to tax claims for laundry costs. In our experience some of the top ones are health and social care workers, maintenance workers, and people who are employed in construction.

So, how much can I claim for laundry expenses?

If you’re planning to claim back tax with regard to laundry costs, it must be the case that wearing your uniform in the first place is a necessity. If you’re employed you can make your claim yourself using form P87. As with your other expenses, self-employed people will need to include it in their tax return.

The current lowest flat rate which you can claim is £60. This means that if you’re a basic-rate taxpayer, 20% of that £60 can be claimed back.

Need some advice about your small business expenses? That’s what our team of friendly accounting professionals are here to help with. Drop us a line on 020 3355 4047 and get an instant online quote.