Andrew Flynn
F.C.C.A., B.SC. (Hons.)
QUESTION: I have my own self-employment business. I like to look smart for my clients, so I buy designer clothes, which I wear at the office and sometimes at home. As I wear them for business, can I claim them as a deduction on my tax return?
ANSWER: No, you will not be able to claim the cost of your clothes as a business deduction. Clothes are not considered a business expense, even if worn for business activities. It makes no difference whether they are designer or retail clothes, as clothing is a need regardless of employment status and they could be worn outside of the work environment.
Tax relief can be claimed for specialist clothes. For example, protective helmets and boots would be an allowable expense for the building sector.
Tax relief is also available for uniforms. To be classed as a uniform, it must be clothing of a specialised nature and recognisable as a uniform, identifying the wearer as having a particular job. For example, the uniform of a nurse.
Where it is customary to wear a specific form of clothing, in performing the duties of a particular occupation, it may be allowable. For example, dinner jackets worn by waiters may be allowable.
For ordinary clothing to be classed as a uniform, a conspicuous badge or logo would need to be attached, permanently.
An employer can pay for clothing for an employee but that would be a benefit in kind, which would be taxable on the employee.
Don’t forget that the deadline for filing 2012/13 tax returns online is 31st January 2014. 1,548 tax payers submitted their tax returns on Christmas day last year with a further 4,685 on Boxing Day.
Merry Christmas and a Happy New Year from everyone at Nabarro Poole!
Nabarro Poole does not accept any liability for actions that readers may take and recommends obtaining specific professional advice before action.
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