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:

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