Understanding Laundry Expenses for the Self-Employed

The HMRC offers a laundry expense tax rebate as part of self-assessment, aimed at helping individuals ease their financial burden. In this article, we’ll break down the key aspects of this rebate, including what qualifies as a uniform, eligible clothing items, applicable industries, claimable amounts, the flat rate for laundry expenses, and the process to claim this rebate.

What HMRC considers as uniform?

When it comes to the laundry expense tax rebate, the HMRC defines a uniform as clothing that is worn solely for work purposes, representing your role or job. It typically includes items with a company logo, specific colours, or a distinctive design that identifies you as part of a particular profession.

What type of clothing can be claimed?

While uniforms are clearly eligible, the
HMRC also extends the rebate to other work-related clothing items. These might
include protective gear, such as helmets, high-visibility vests, and safety
boots, necessary for your job’s requirements.  However, keep in mind that, suits and other
dresses that might be used for both work and personal use, cannot be claimed
under any rebate. 
These uniforms can be divided into 3 major categories:

 

Branded Uniforms

For e.g.: A nurse or a bartender can have a dress that has the organisation logo for which they work. These types of clothing’s are claimable, as long as they are visible and not easily removable.

Protective Clothing or Equipment

Some industries require you to wear a protective gear, like a helmet to safeguard yourself during work. Such expenses are also claimable.

Costumes

This is specifically for those cases where you have to dress up. For example, a clown or a magician can use this and claim the rebate. Book a call with one of our experts to see if you qualify.

Which all Industries is this applicable?

The laundry expense tax rebate isn’t restricted to any single industry. It’s open to a wide range of sectors, spanning from healthcare and hospitality to construction and corporate. As long as your attire fulfils the criteria set by the HMRC, you can explore the possibility of claiming this rebate. You can see the full list of industries listed by HMRC over here.

What is the flat rate for laundry expense?

To simplify the process, the HMRC offers a flat rate for laundry expenses. As of the latest update, this rate is set at £60 per year. 

How much can be claimed?

The amount you can claim as part of the laundry expense tax rebate depends on the type of clothing you’re seeking to claim for and your industry’s norms. It’s crucial to keep accurate records of your expenses, including receipts and invoices, to ensure your claim’s legitimacy.

The flat rate for the tax year 2023/24 is set at £60.  Therefore,

If you earn over £50,270, you can claim up to 40% of £60 back

If you earn less than £ 50,270, you can claim up to 20% of £60 back.

 

You can claim back the amount incurred, by holding on to the receipts.

How to claim the laundry rebate?

Gather Documentation: Collect all relevant receipts, invoices, and records that highlight your eligible clothing expenses.

Complete Your Self-Assessment: When filling out your self-assessment tax return, ensure you include the necessary sections for claiming laundry expenses.

Provide Details: Clearly outline the items you’re claiming for and their associated costs. If you’re claiming beyond the flat rate, be prepared to provide itemized evidence.

Submit Your Claim: Submit your self-assessment tax return, either online or via post, with accurate and complete information regarding your laundry expense claim.

 

Got more questions? Book a consultation with one of our tax specialists and get your query resolved.

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