One-third of employed people in the UK are eligible for a uniform tax allowance. You may be entitled to a tax rebate. Sarah Laing tells you how to claim.
You may be entitled to a uniform tax allowance if your work requires you to wear a uniform that is provided by your employer and bears a company logo. Depending upon your employment, this could be anything from a polo shirt with the company’s logo on it, to a high-visibility jacket and overalls. If you are then required to maintain that uniform at your own expense without a contribution from your employer, you are likely to be entitled to the allowance.
Flat rate allowances
Flat rate expenses for cleaning costs have been negotiated for operatives in particular industries (including shop workers wearing a branded uniform). You can find a full list of flat rate expenses on the HMRC website at www.hmrc.gov.uk/manuals/eimanual/EIM32712.htm. There are also separate flat rate expenses available for nurses and other health care workers.
In addition, for 2013/14 onwards, HMRC and the British Airline Pilots' Association (BALPA) have agreed an increase to the industry wide flat rate expenses allowance, which applies to all uniformed commercial pilots and co-pilots (including helicopter pilots), and other uniformed flight deck crew (but not cabin staff).
Armed forces
In addition to the flat rate expenses outlined, a new annual flat rate expense allowance for laundering uniforms by ratings and other ranks has recently been agreed between HMRC and Ministry of Defence. The following annual flat rate expense allowance (FREA) may be claimed for laundering uniforms:
- Royal Navy £80;
- Army £100;
- Royal Marines £100; and
- Royal Air Force £100.
The FREA will be backdated from 6 April 2008. The full expense allowance is allowable for each year of service. It will not be reduced if the taxpayer’s service started or ended part-way through a year. For further information, see the government’s website at www.gov.uk/laundry-allowance-claims-from-ratings-and-other-ranks-in-the-ministry-of-defense.
Example – Soldier claims his back-dated uniform allowance
John has been employed by the army other ranks since July 2008. He is entitled to an annual flat rate uniform allowance of £100 for each year for 2008/09 onwards. He is a basic rate (20%) taxpayer. For the tax years up to and including 2013/14 he is entitled to a tax rebate as follows:
Allowance £100
Tax on allowance @ 20% £20
Number of years of service (2008/09 to 2013/14) 6
Tax rebate due (6 x £20) £120
He will also be entitled to a small repayment supplement (interest) on the rebate. The average annual interest rate over the period is 0.5%.
For 2014/15 onwards, the allowance of £100 will be included in his PAYE tax code number, and he will receive the annual allowance in his monthly salary.
Claiming the allowance
There is no separate form for claiming flat rate expense allowances. You will need to contact HMRC directly. You can either contact the HMRC office dealing with your income tax self-assessment, or call the HMRC Taxes Helpline on 0300 200 3300. Claims typically take between six and eight weeks to process.
Who cannot claim?
The cost of clothing worn at work has been considered by the Courts on a number of occasions, and in many cases they have ruled that the cost of work clothing is not incurred ‘wholly and exclusively in the performance’ of the taxpayer’s duties. In general terms, you will not be able to claim a clothing allowance for the cost of upkeep, replacement and repair of ordinary clothing, even if you only wear it for work.
Practical Tip:
Remember that by making a uniform tax claim, you could not only potentially be due a tax rebate now, but your PAYE tax code will also change meaning that you pay less tax in future years.
