Tax Efficiency For Embroidered Company Uniform

The cost of purchasing and, in some cases, maintaining staff uniforms can often be expensive for a business. 

There are, however, tax benefits to buying and providing branded staff clothing, so here are some of the points to bear in mind when deciding on a staff uniform for your business.

Embroidered branding makes it untaxable

Branding an item of staff clothing with an embroidered logo makes that item untaxable in the eyes of HMRC. 

Once an item of work clothing is branded with an embroidered company logo, it then becomes a garment that can only be worn in the workplace to which the company logo applies and is therefore untaxable. 

The embroidered company logo makes the item different from other clothing and therefore classed as an embroidered company clothing garment. Any clothing purchased as a work item and worn in the workplace which is not branded is then classed as a fringe benefit.

Removable branding still incurs tax

Using a removable branding option, such as an embroidered badge with the company logo that can be easily removed from the garment, will still incur tax. 

If you can wear the clothing item at work with the company logo showing but then remove it to wear in other places, then HMRC will look at this as an unbranded work uniform item and will tax accordingly.

All clothing worn in the workplace needs to be branded

You cannot choose which workwear items to embroider with your company logo. 

All clothing designated as a staff uniform item must be embroidered with the company logo to be classed as uniform and, therefore, untaxable.

Safety clothing and specific clothing items

Clothing worn for safety, such as hi-vis clothing, does not need to be branded to qualify for tax purposes. 

Similarly, items of clothing that are required for safety, such as welders’ aprons and gloves, are also not required to carry a company logo to qualify. This includes medical wear such as tunics and gowns.

Claiming tax on the upkeep of your embroidered uniform

An employee can claim back tax on the cost of keeping their uniform clean and presentable if they are the ones paying for this.

Most people can claim £60 per year for the upkeep of their uniform, but certain professions can claim more. Those in the medical profession can claim up to £125 per year.

JKL Clothing provides a full embroidered staff uniform branding service. 

From the conception of your company logo to receiving the finished embroidered garment, we can provide help and advice to ensure you and your staff get the embroidered workwear clothing items you require so you can take advantage of any tax breaks available.