Uniform Tax Relief & VAT Reclaims: What UK Businesses Need to Know

If your employees wear branded uniforms or workwear, you could be entitled to Uniform Tax Relief and VAT reclaims, helping you save money while keeping your team looking professional.

What is Uniform Tax Relief?

Uniform Tax Relief is a HMRC approved deduction that allows employees to claim back the cost of maintaining and cleaning work uniforms , especially when they’re required to wear branded clothing at work.

Eligibility:

• Employees must wear a uniform that's recognisable (e.g., branded polo, hi-vis vest with logo).
  
• The employee must be responsible for cleaning and maintaining the uniform (not provided through company services).
  
• Applies to many industries: retail, hospitality, trades, etc.

Employees can claim:

• A flat-rate tax deduction each year (ranging from £60 to £185 depending on industry).
  
• Claims can be backdated up to 4 tax years.

You cannot claim tax relief if:

❌ You wear generic clothing, even if required for work (e.g., a plain shirt and trousers).

❌ Your employer provides laundry or reimburses costs.

❌ You only purchase the uniform but do not maintain it yourself.

VAT Reclaims on Branded Workwear

Businesses registered for VAT can reclaim VAT on uniforms and workwear, if it features a permanent logo and is used exclusively for work purposes.

Key Points:

• Workwear must be branded with your company logo.
  
• Must be not suitable for everyday wear (e.g., specialist safety clothing, embroidered uniforms).
  
• Keep detailed invoices from suppliers like Color Coded Ltd.
  

Tip: Branded workwear is not just a great team asset, it also helps reduce your tax burden!

How to Claim

• Employees: Use the HMRC P87 form (or online tool via GOV.UK).
  
• Employers: Submit VAT claims through your regular VAT return using valid receipts.
• Color Coded Ltd provide VAT receipts on all our sales.

Color Coded Ltd Makes It Easy

All ColorCoded Workwear branded garments come with clear, itemised invoices and proper documentation, making VAT claims straightforward. Plus, we help our clients understand eligibility when ordering.

VAT Reclaims FAQ's:-

Is it true that a UK business can reclaim VAT on branded uniforms?
Yes. UK VAT-registered businesses can usually reclaim VAT on branded uniforms and workwear, provided the clothing is used exclusively for work and features a permanent company logo.

Is branding required to reclaim VAT on workwear?
Yes. HMRC generally requires workwear to be clearly identifiable as business clothing.

How much can I claim?

You can claim for the actual amount you have spent or an agreed fixed amount. Make sure you retain all VAT invoices to help with your claim.

How far back can VAT be reclaimed on workwear?
You can claim for the current tax year and the four previous years.

Can you provide an example of what clothing is not eligible for VAT reclaims?
You cannot claim tax relief for PPE. If your job requires you to use PPE your employer should either: give you PPE free of charge or ask you to buy it and then reimburse you.

How do I claim?
If you claim the actual amount you have spent you must send copies of your receipts, or other evidence, which proves you’ve paid for the items. Claim these as 'Other Expenses' within the service.

Want to save on branded uniforms and claim back more?
Let ColorCoded Workwear help you stay compliant and stylish.

View our range of workwear products here>>

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The information above is correct as of 2025!

ColorCoded Workwear are branded workwear specialists, not tax advisors!

This information is to be treated as a guide only.