Employee Uniforms

A Gift of Uniforms This Festive Season

A thoughtful gift that may benefit both the employee and employer may be providing new uniforms for your employees. But you may want to consider the tax implications of such a gesture.

Tax-free Clothing

Clothing (suits, shirts, blouses) can be provided tax-free to employees, given they meet certain conditions. The clothing must be recognisable as a distinctive uniform for a specific job. For example, a Santa suit for a shopping centre Santa or branded uniforms for retail workers. The uniforms should not be suitable for everyday wear, such as blouses or a suit jacket without a company logo.

Company Logo

If the clothing bears a visible company logo, that any passerby on the street could recognise as a business logo, then this may qualify as uniform. The logo must be permanently fixed to the clothing, and cannot be easily removed, such as a detachable badge. The logo must also be visible, and not covered, i.e. shoes or socks would not ordinarily qualify as uniform.

Employee Considerations

If employees instead bear the cost of their own uniform, then they may be happy to know the costs to wash, repair or replace uniforms that they are required to wear as part of their job are tax-deductible. The initial cost of the uniform is not deductible; however, they can claim a flat rate expense allowance for uniform maintenance if they are not provided with a free laundering service by their employer. The amount of the allowance may vary depending on the employee’s occupation.

Spread the Holiday Spirit

Providing new uniforms during the festive season can be a wonderful way to show appreciation for your employees’ hard work throughout the year. Not only does it enhance the professional image of your business, but it also ensures your team looks their best while spreading holiday cheer.

If you need any help with the exemption, please contact our helpful UNW elves at employmenttaxesteam@unw.co.uk.