So you have had to buy a smart new outfit for an important client meeting. Surely you can put this clothing through as a business expense right?
Unfortunately no!
To qualify as a business expense, you must use the clothing “wholly and exclusively for business” to meet HMRC’s basic test.
This means no personal benefit. HMRC uses the term “everyday wardrobe.” This means if you could wear an item of clothing outside of work, it’s usually not an allowable expense.
All is not lost!
While the rules when it comes to clothing are strict, there are some clothing costs which are allowed as a business expense.
You can claim the following clothing items as a business expense:
Uniforms
A uniform is a set of clothing that identifies you as having a certain occupation (like a nurse or firefighter) or working for a certain organisation.
This second part means that clothing that has the company logo is allowable.
The branding or logo must be obvious and can’t be removed or easily hidden.
It’s best to order clothing with the branding already on it, like a branded shirt or hoodie. Attaching a badge later doesn’t count.
The important thing is easy identification. Someone on the street should be able to recognise your occupation or the organisation you work for.
Protective clothing
If your job requires you to wear certain protective clothing to protect yourself from injury or infection, these would be allowable expenses.
Examples would be safety boots, overalls, helmets, protective eyewear and hi-vis jackets.
These items do not need to have a logo on them.
Lets face it, it’s unlikely you are going to wear your overalls and boots out to dinner on a Saturday night!
Costumes
This is mostly for actors and entertainers. Should you ever wish to dress up as a burger to promote your catering business, you’ll be able to claim for this as it is clearly a costume!
Exception:
There is one area where you may be able to claim for an outfit.
You might be able to claim for a hired outfit for a specific event, like a product launch or speaking engagement. If the event generates income, you can expense the cost of the hire. There must be a clear business benefit. You cannot just attend as a guest; you need to have an active role.
Dressed for Success, Without the Stress
We know it can be frustrating when the rules around expenses seem complicated, especially for something as fundamental as clothing. The main takeaway is that HMRC draws a firm line between your personal wardrobe and specific, functional workwear.
By focusing your claims on permanently branded uniforms, essential protective gear, or job-specific costumes, you can stay on the right side of the taxman.
If you’re looking for peace of mind and want to make sure you’re maximising your allowable expenses correctly, don’t hesitate to get in touch with us today.
