Expenses and benefits: clothing
What to report and pay
If the clothing you provide isn’t exempt, you may have to report it to HM Revenue and Customs (HMRC), and you may have to pay tax and National Insurance on the value.
Uniforms or protective clothing
You must report the cost on form P11D of:
- buying the clothing for your employees
- lending it to them
- cleaning or repairing it
If you provide uniforms or protective clothing, you can get exemptions (which have replaced dispensations). This means you won’t have to include them in your end-of-year reports.
Any other clothing
This includes clothing employees wear at work that isn’t necessary protective clothing or a uniform.
If you buy other clothing for employees, or lend it to them, you must:
- report the cost on form P11D
- pay Class 1A National Insurance on the value of the benefit
If your employees buy it and you pay them back, you must:
- add the value of the benefit to your employee’s other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll
If your employees buy any non-durable clothing (eg tights and stockings) and you pay them back, you must:
- add the value of the benefit to your employee’s other earnings
- deduct and pay PAYE tax (but not Class 1 National Insurance) through payroll
If your employees pay to have clothing cleaned or repaired, you must:
- add the value of the benefit to their other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll