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Posts Tagged ‘allowable expenses’

workwear

Can I offset my clothing costs for tax?

A common question that arises when working with our clients is with regards to expenditure on clothing and what is allowable to be offset for tax.

What CANNOT be offset?

The simple ruling is that any ordinary items of clothing that can be worn during the course of business cannot be allowed to be offset for tax.

The term “ordinary” in this case would apply to shirts, suits, and shoes that could be worn either at work, or in a non-work environment.
So even if your business requires you to wear smart suits for meeting clients, unfortunately this is not classified as work wear and is not allowable to be offset for tax.

What CAN be offset?

Items that can be offset would include protective clothing or any item of clothing that cannot reasonably be worn outside of the work environment.
This would include any item of clothing that has the company logo such as t shirts or coats.

So, if you routinely issue clothing to your staff, it is worth exploring the option of purchasing clothing which includes your company logo which will both promote your business, and also save you money on your tax bill.

Accountants Harlow – Transform Accounting – The Essex Accountants

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