Determining whether a claim for the cost of work clothes is tax deductible falls under the general rule for deduction of any expenses incurred by an employee. According to the statute, an expense is allowed if the employee is required to incur it and it is incurred 'wholly, exclusively, and necessarily in the performance of the duties of the employment'. For the self-employed, the condition is less stringent, requiring the expense to be incurred 'wholly and exclusively' for the purposes of the trade.

Since everyone must wear clothes, such expenditure usually fails these statutory tests due to a duality of purpose (even if worn only for work). Apportioning the cost of ordinary clothing used exclusively at work between allowable business purposes and non-allowable personal purposes is also impossible.

The only exception HMRC allows is for a uniform or clothing worn for protective reasons, but this can also present challenges. There is no specific section in any Act covering the deduction for the cost of work clothes, so HMRC must rely on precedent to decide whether to allow a claim.

Over the years, taxpayers have tried to claim that certain jobs require specific types of clothing and should therefore be deductible. However, tribunals have ruled that simply needing to wear a particular type of clothing does not make it deductible. For example, in the Mallalieu v Drummond [1983] case, no deduction was allowed for clothing forming an ‘everyday’ wardrobe. Ms. Drummond, a barrister, tried to claim the cost of black clothes, a white blouse, etc., required for court appearances under the Bar Council’s dress code, arguing these clothes would not normally be purchased. The expense was not allowed due to the dual-purpose rule, as the clothing enabled the claimant to be warm, properly dressed, and able to work.

Conversely, a taxpayer who won their case was Gemma Daniels v HMRC [2018]. Ms. Daniels, a self-employed 'exotic dancer', claimed tax relief for her work clothing, lingerie, dry cleaning, make-up, beauty treatments, and hairdressing. It was held that there was no duality of purpose, her clothes were not required for 'warmth and decency', and, importantly, were not worn outside work.

Protective Clothing

HMRC will generally accept claims for clothing required to be worn due to the nature of the employee’s job, preventing physical injury or protecting normal clothing against damage. This includes items such as safety boots and shoes, hard hats, aprons, ear defenders, safety goggles, and overalls. The taxpayer's specific occupation will determine the required protective clothing, and in some industries, this is mandated by health and safety legislation. During the Covid outbreak, HMRC confirmed that the provision of personal protective equipment (PPE) by an employer (or the purchase by an employee with reimbursement) is tax-free.

Uniform

The cost of a uniform intended to identify its wearer as having a particular occupation is allowed. HMRC’s manuals cite traditional nurse or police uniforms. HMRC will also typically allow clothing provided by construction companies and related businesses (e.g., electricians, plumbers, etc.) that bears the employer's logo or name. The reasoning is that employer-provided clothing is clearly distinguishable from clothing worn for private use, but HMRC confirms that each case is considered on its merits. Note that the badge must be fixed or sewn into the garment – 'a detachable badge is not sufficient to make the clothing to which it is attached part of a uniform' (EIM32475).

Practical Point

Trade unions have negotiated flat rate deductions on a national basis covering the cost of otherwise non-allowable protective clothing and general laundry expenses. These flat rate deductions apply only to employees in specified occupations. Therefore, if a claim is not possible under the 'work clothes' rules, some of the cost can be claimed under the flat rate deduction scheme.