Is the cost of buying uniforms for our employees allowable for tax?
Yes, uniform costs are tax deductible as long as the clothing has a non-removable badge or logo embroidered onto it to advertise the business – a removable badge isn’t sufficient. Any protective items, such as overalls or steel toe-capped boots, are allowable even without a logo.
Asking your employees to wear similar clothing or colours to re-inforce your brand does not constitute a uniform, and so these costs won’t be allowable. Neither is the cost of purchasing a suit to wear to work, as HMRC views this as something which can be worn outside of the workplace.
We’re thinking of holding a social for our staff. What are the tax rules on this?
A business can spend up to £150 per employee per year (including VAT) to provide annual events for its staff without any implications for the employee. Your business, as the employer, can claim tax relief on the cost of this.
The event must be open to all employees, so can’t be say just for the management team. This £150 can include everything from food and drink, to travel and accommodation.
If the total costs of all events exceeds £150 per head, you will still get tax relief however the total cost, (and not just the excess) will become a taxable benefit-in-kind on your employees.