When it comes to claiming the expense of workwear and corporate gifts it is all about using your logo!
You can buy workwear with your logo on it and it will be a taxable expense. Most other clothing is not going to be allowed unless its very clearly specifically for business.
Maybe you need some t-shirts or hoodies to go to an event and promote your business, or you work out and about and would like to show off about your company. As long as it has a company logo on it it is an allowable expense for tax purposes. We have recently ordered some 2 Sisters jumpers to advertise our business while being warm. Also helps us to justify working in a hoody if we can call it uniform.
A suit wouldn’t be allowable. Steel toecap boots especially for building sites would be. It needs to be a clear distinction.
HMRC also allows you to claim a business gift worth up to £50 to any one person in any one tax year. However, these gifts must be business related (for example a business/work diary) and must not be food, alcoholic beverages or tobacco. Similarly, the gift must not be vouchers which can be exchanged for food, alcohol or tobacco. The gift must also contain an advertisement for your business, such as the company logo, in order for it to be recognised as a corporate gift. Maybe some nice pens to hand out to everyone to remind them of you?
Also, be aware that if the gift costs more that £50, HMRC will disallow the entire amount, not just the amount over the £50. This will mean that you will not be able to claim for the gift. Stick to these rules, though, and you’ll be able to claim your client business gift on expenses.
