‘Tax Tagging’ - Are you and your staff still paying for your own business suits and clothing?
Surprisingly few people are aware that you can have your tailored business clothing legitimately paid for 100% by your company and treated as a tax-deductible business expense.
This is not a personal fringe benefit. It is a perfectible permissible business expense that your organisation can claim.
Who does this apply to?
- Business owners
- Partners
- Principals
- Directors
- Executives
- Managers
- Supervisors
- Clerical staff
- And more
What types of clothing are covered?
- Suits
- Formal trousers & jackets
- Shirts
- Blouses
- Ties
- Scarves
- Knitwear
- Raincoats
If appropriately logoed, work clothing is fully tax deductible and VAT refundable. Taking advantage of this allowance is a very tax-efficient way of rewarding yourself and your staff.
Not just for casual staff wear and tough workwear
You are probably already aware that branded clothing, such as polo shirts, fleeces, sweatshirts and the like are tax-deductible; which is indeed the case.
Clearly this type of clothing is not appropriate for white-collar office environments; where the traditional attire consists of a smart suit and shirt, or the equivalent; however, the same principle applies.
Provided the clothing features a ‘discreet’ logo that distinguishes it from your personal wardrobe, the ruling applies and your ‘work’ wardrobe can be charged to the business.
So how does it work?
With tailored garments, such as suits, jackets, skirts, dresses and trousers, the most popular and effective method is known as ‘tax tagging’.
This involves applying a subtle and discreet tag to the item of clothing. If done correctly, the process meets with HMRC approval and ensures the items are a legitimate business expense and 100% tax-deductible.
The ‘Tax Tagging’ experts
Here at TM Clothing & Gifts, we have a wealth of experience supporting organisations of all sizes take advantage of this little-known tax-efficient initiative.
We’ve worked with many names you would be familiar with, including: Brittany Ferries, Newbury Building Society, Hampshire County Council and The Goodwood Hotel to name but a few; however, we’ve also helped numerous smaller organisations in a variety of professional sectors, including solicitors, accountants, financial advisors, insurance brokers and business consultants,
To find out how it could work for your organisation and to take a look at a sample of the range of tailored clothing available, please get in contact by giving us a call on 01730 711 140 or emailing shannon@tm-clothing.com.