When you’re self-employed you want to claim everything possible to reduce your tax bill.
So it is very common for me to be asked whether clothing can be claimed as a tax deductions.
It is a grey area, with what is tax allowable being different according to professions and industries.
Here is the advice I give to anyone that asks me about claiming for their clothing:
Everyday Clothing is Not Tax Deductible
Even if you have to wear a suit or certain type of clothing to work, you cannot claim the cost of these outfits against your taxes.
This is simply because there could be occasions where you could wear those clothes for personal reasons.
So if you work from home and choose to wear casual clothes all day, then you wouldn’t be able to claim for the cost of these on your tax return.
Branded Clothing is Tax Deductible
If you wear clothing that is branded in your business name, then you can claim a tax deduction for getting it made.
Uniforms are Tax Deductible
If you need to buy a uniform that is specifically required to do your job then you can claim for the cost of this against your taxes.
Protective Clothing is Tax Deductible
Like uniforms, protective clothing is also tax deductible. That’s things like:
- Hard hats;
- Steel toe boots;
Costumes are Tax Deductible
If you have to wear a costume as part of your work, then this cost would be tax deductible.
The obvious examples are clowns but it also extends to any other types of entertainers like models and actors.
Anita is a Chartered Accountant with over a decade of experience taking self-employed business owners from financially confused to business savvy.
She is the creator of the ‘Go Self Employed’ website, which is her corner on the internet where she makes self-employment less terrifying.