The cost of clothing appears within the business expenses of some of our clients from time to time. Consideration needs to be given to whether or not this expense is tax deductible, or in other words, does this expenditure lead to a reduction in taxable company profits.
HMRC only generally allow specific clothing that is essentially needed during the course of employment or conducting business. The following examples fall within this acceptance criteria:
3. Protective clothing
The real test here is the “wholly and exclusively” test. It is fairly straight forward to argue that the clothing listed above is for work purposes only and not purchased for private use.
The main thing to consider when claiming an expense for clothing is that the clothing does not have any private benefit.
If you’re in any doubt about business expenses in general then feel free to consult one of our cheap accountants.