Can you claim clothing as a business expense?

We get a lot of questions about what you can claim as a business expense, and clothing is one of the confusing topics when you’re self-employed.

Most jobs have some sort of dress code – whether you wear suits and heels or overalls and steel-toed boots. Work clothes can be a significant expense for any business owner or employee. You only buy these clothes for your job, so it feels as though they should be business expenses, right? Well, not quite.

What types of clothing can you claim as a business expense?

Inland Revenue has identified clothing and grooming as common areas where business owners, including real estate agents, can get their expense claims wrong.

Under the current rules, you can generally only claim clothing as a business expense if it is specialist, protective or distinctive work clothing that is not normally suitable for private use. Clothing you can claim includes:

• Uniforms

• Protective clothing like overalls, goggles or steel-toed boots

• Safety clothing such as high-vis vests

• Distinctive work clothing that clearly identifies you with the business and would not normally be worn for private purposes

What types of clothing can’t be claimed as a business expense?

Just because you only wear an item of clothing at work doesn’t mean you can claim it as a business expense.

Anything that you could reasonably wear in your everyday life cannot be claimed as a business expense. That includes clothes you buy specifically for work, like an expensive suit, that you wouldn’t otherwise have purchased. It may also apply to ordinary sportswear or footwear that could be used privately, even if you purchased it for work.

The general position remains that ordinary clothing is a private expense, even when your job requires you to dress in a particular way or you only wear the clothing while working.

Not sure whether your work clothing qualifies?

Give us a call or drop us an email – we can answer your questions about what’s claimable against your business.