I have a client who want to expense clothing cost for her staff. The clothes are mainly suit worn in shop to look presentable to customer. They are purely used in store and staff are not allowed to take it home as they have to wear it while working as shop assistant. They litterally are uniform!
I know they can not really be claimed as per Hmrc rules. Can anyone re-confirm. If they can be claimed through expense please explain how we can argue the case with HMRC!
you would need a company logo to make it claimable - I believe can also do such a thing as "tax tabs" - a client of mine is able to get them as he sells workwear although the tabs are bulk buy. elan clothing - Reading.
-- Edited by Donna CBK on Tuesday 7th of February 2012 06:37:55 PM
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You could suggest that the client has a small logo embroidered somewhere on the jackets, which would change things (assumming that they clothing was all identical)
Even a small sew in label saying 'property of .....' and also a contract term stating that all clothing should be returned should suffice.
Hi Phil
Not disagreeing with you, just hoping to expand on what i know (or don't know ) but how does that square with the extract below, taken from EIM 32478?
"If the benefit of employer provided clothing does not satisfy the conditions for a deduction under Section 336 the employee is taxable on whatever is the cash equivalent of the benefit. See generally EIM21102. If the clothing is given to the employee the cash equivalent is the cost to the employer. However, if the clothing remains the property of the employer, the taxable amount is the annual value of the use of the clothing (see EIM21631). That is, usually, 20% of its market value when first applied as a benefit.
To me that implies that putting a label stating that the clothes are the property of xxxx, just affirms who owns it, not that i'ts a uniform. Would it not need to be liveried in some way, or be clothing that is not normal day wear, like a tuxedo for waiters, for example.
Even a small sew in label saying 'property of .....' and also a contract term stating that all clothing should be returned should suffice.
Hi Phil
Not disagreeing with you, just hoping to expand on what i know (or don't know ) but how does that squaare with the extract below, taken from EIM 32478?
"If the benefit of employer provided clothing does not satisfy the conditions for a deduction under Section 336 the employee is taxable on whatever is the cash equivalent of the benefit. See generally EIM21102. If the clothing is given to the employee the cash equivalent is the cost to the employer. However, if the clothing remains the property of the employer, the taxable amount is the annual value of the use of the clothing (see EIM21631). That is, usually, 20% of its market value when first applied as a benefit.
To me that implies that putting a label stating that the clothes are the property of xxxx, just affirms who owns it, not that i'ts a uniform. Would it not need to be liveried in some way, or be clothing that is not normal day wear, like a tuxedo for waiters, for example.
Bill
Agree to a point however the benefit only exists if their is personal use. A normal suit would probably generate a bik; however,a standard type of workwear across all employees would not. Think about someone who works on the counter at say Barclays bank. They all wear the same stuff but it is not logoed (they have a seperate badge). They wohld not have a benefit in kind.
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) but how does that square with the extract below, taken from EIM 32478?
