Clothing as a business expense
Regardless of the type of business, we see a lot of questions around whether you can put clothing through as a business expense. In short, the answer is no, clothing is not an allowable expense, although there are a few exceptions.
We’ve seen a lot of misinformation online and a lot of misinterpretation of the rules, but one thing is clear - You cannot claim for everyday clothing (even if you wear it for work). This is straight off the HMRC website. This doesn’t leave any room for interpretation, normal clothes, regardless of the profession cannot be claimed as an allowable business expense.
The same article also mentions the exceptions that can be allowable business expenses:
Uniforms
Protective clothing needed for your work
Costumes for actors and entertainers
These need a bit more information so there’s a full understanding, but it’s still fairly straightforward.
Uniforms - Uniforms are defined by HMRC as “a set of clothing of a specialised nature that is recognisable as a uniform and is intended to identify its wearer as having a particular occupation. Examples include traditional nurse or police uniforms”. The article goes on to state that all employees in the same employment wearing clothes of a similar design or colour does not constitute a uniform. So for example, if a restaurant wanted all staff to wear black suits then this does not constitute a uniform, so is not an allowable expense.
Fixing a permanent and conspicuous badge or company logo to an item of ordinary clothing may be enough to make it a uniform, but each case would be considered on its individual merits. The essential test for HMRC would be if a person in the street recognised the person wearing this clothing as wearing a uniform. A detachable badge is not sufficient.
Protective clothing needed for your work - Regarding protective clothing, HMRC are clear that it is only an allowable expense if the clothing is worn as a matter or physical necessity because of the nature of the job and the employee must bear the cost. This will typically cover overalls, protective gloves and boots. For example, high-vis vests or steel toe-capped boots.
Protection against the weather is not included in this, so a warm jacket or raincoat for someone working outside is not an allowable business expense.
Costumes for actors and entertainers - Actors can claim back clothing as an allowable expense if they are classed as costumes. This is another area where HMRC are quote clear on ‘everyday’ clothes being not being an allowable business expense. The HMRC website states the following:
“The general rule for clothing costs is set out in BIM37910 where the case of Mallalieu v Drummond [1983] 57TC330 is discussed. In Mallalieu, Lord Brightman explained that a self-employed person could not claim a deduction for the cost of ‘a wardrobe of everyday clothes’ even if they were used solely for work. There is an inevitable non-business purpose in the acquisition of such clothing: the provision of warmth and decency.”
The exception is where clothing is purchased specifically for a role in TV, film or theatre, this is then allowable. Any other clothing purchases are not allowable business expenses.
As with anything regarding expenses, always check with HMRC on what the rules are as HMRC will be the ones that enforce them and will fine you if they find that you are falsely claiming expenses, regardless of whether you’ve been advised otherwise by another party.