Uniforms, from specific outfits such as nurses or police officer’s uniforms to bar staff or waiters who are required to wear a shirt with their employer’s logo make up almost 2/3 of the UK working population.
Maintaining a dress code for any organization or business is quite normal.
- Correct dress code makes a suitable corporate image of your organization/business.
- It helps in the brand promotion of the organization/ business.
- Customers or the general public can easily identify the employees.
If, as an employee, you are required to wear protective clothing or uniform for work, which is specialized, and you are required to wash & maintain it yourself or purchase a new one without the help of your employer.
Even if it is a simple T-shirt with your employer’s logo on it or a full uniform similar to what a nurse, doctor, dentist, or pilot is required to wear, then you can claim a uniform tax rebate worth £100s.
Taxes are something that none of us like paying or fully understand. Despite accepting how important they are and why we should pay taxes in a just fair society, all tax-paying working individuals jump at the chance of getting some tax rebate back.
The UK government offers tax reliefs of various types based on work expenditures made personally by employees. The option to claim a uniform tax rebate is one of these reliefs.
Here’s everything you need to know about why you may be eligible and how to claim a uniform tax rebate.
What is Uniform Tax Relief?
Uniform tax relief (sometimes called uniform benefits, uniform tax rebate, or HMRC uniform allowances) is a special kind of tax relief for people who have to clean, repair or replace specialist work clothing.
You could be entitled to a tax refund of £100s for up to five years of work expenses if you wear a uniform at work and have to wash, fix, or replace it yourself. If it’s a branded T-shirt or a uniform specific to your industry, you could be owed a tax rebate.
There are specific rules about who qualifies for it and what counts as a “uniform”, but they’re not always clear. As a result, a lot of people are missing out on years’ worth of tax refunds totalling hundreds of pounds or more.
Part of the expenditure that an employee makes on buying and maintaining his uniform, without any help from the employer, is made up for by the uniform tax relief provided on the income tax.
Am I Eligible for a Uniform Tax Rebate?
To be eligible for a tax rebate, all of the following conditions must be met:
- You wear a recognizable uniform that identifies the occupation, such as a branded T-shirt, a nurse’s uniform, or a police uniform.
Wearing a clown costume when you are a performer in an amusement park would probably qualify. Wearing a clown uniform when you’re an accountant most likely will not. So basically, if you wear a uniform for your job you could be entitled to a tax refund. - According to HMRC, a simple test would be whether you were out and about in your work uniform and a member of the public recognized your employer from the logos or business name on your uniform.
- Your employer requires that you wear it when on the job.
- It is your responsibility to buy, clean, fix, or upgrade it. You can only claim back if the expenses for its maintenance and washing are taken care of by you.
If you do all the uniform maintenance yourself, including washing the uniform without getting any financial help from your employer, you are entitled to claim the uniform tax rebate.
You cannot, however, claim if your employer washes your equipment, offers facilities for doing so (even if you don’t use them), or pays you to do so. In short, If the money is not coming out of your own pocket, you can’t claim back tax on it. - You paid income tax in the year you are claiming for.
It is essential that you pay income tax for the year for which you are claiming the tax rebate since this is a benefit to minimize your tax liability.
What is a P87 form?
A P87 form is a tax rebate form you use to claim tax relief directly with HMRC for your work expenses such as Uniform Allowance.
All rebates for employment expenses are filed through a uniform tax rebate form P87 which includes details like your job, work industry, employer details, National Insurance Number, and the PAYE number.
You can only claim your tax refunds with a P87 if you’re an employee and pay tax.
If you’re self-employed, you must tell HMRC about your expenses through the self-assessment system. You also have to use Self-Assessment if you have work expenses of over £2,500 to claim for in one year, as you may then need to provide proof.
You will need to submit a separate P87 for each job you’re claiming a tax refund for as the rates and eligibility for jobs you have worked in may differ.
To notify HMRC of any due tax rebate on uniform or tax relief, you can either submit this form online or fill it, print it, and post it to them at the following address:
Pay As You Earn, HM Revenue and Customs, BX9 1AS.
Post submission of the online form, you get a reference number you can use to track the progress of your claim. Normally, it takes around 8 weeks for the claim to get processed, but currently, due to the pandemic, it is taking more than 4 months.
However, remember not to use this form if you have not paid any tax during the related tax year, as you cannot claim a tax rebate if you have not paid any tax in that tax year.
If your claim is more than £2500 then you will have to complete a Self-Assessment tax return for the concerned year and provide proof of the expenses. If you do not file a self-Assessment tax return, you could be liable for fines and penalties.
When can you use the P87 form?
You are eligible to claim for your work-related expenses vis the form if:
- You’re an employee.
- You do not have to submit an annual tax return.
- Your allowable expenses are less than £2,500 for the tax year.
When can’t you use HMRC Form P87?
You cannot use the P87 form if:
- You’re self-employed.
If you’re self-employed, you can claim uniform and laundry costs on your self-assessment tax return rather than claiming directly with HMRC.
- Your self-assessment tax return is already complete.
- Your total expenses exceed £2,500 in a given year.
- You’ve not paid any tax throughout the year
Who can’t claim Uniform Tax Allowance?
Armed forces personnel are one category that should not be required to go through the process. Their tax code could address the expense of maintaining their uniforms, with their tax-free personal allowance increased to compensate.
How much can I get back for my Uniform Allowance claim?
The tax relief amount you’re able to claim depends on the type of industry and job you are working.
The regular flat-rate uniform maintenance cost allowance is £60. You’ll get back the amount of tax you would have paid on the £60 if you applied for a uniform tax refund. As a result, if you’re a basic-rate taxpayer, you’ll get a refund of 20% of £60, or £12. Higher-rate taxpayers (earning above £50k per year) will get a refund of 40% i.e. a refund of £24.
You can backdate your claim for up to 4 years. If you are successful, the current tax rebate is applied to your tax account and the backdated amount is sent to you as a lump sum payment.
Depending on your industry, you might be able to receive more.
Some jobs have more strict restrictions, such as ambulance personnel, who have a maximum annual allowance of £185 due to the use of specialized uniforms.
For each year they say, basic-rate taxpayers will receive £37 in tax back (higher-rate taxpayers would receive £74). Nurses and midwives will apply for shoes, socks, and tights in addition to their regular allowance (£125).
Click here to check the full list of industries & occupations with their HMRC tax relief rates.
Can I claim Uniform Allowance if I only had to wear the uniform for part of the year?
Tax relief for cleaning a uniform is a flat rate, so as long as you were required to wear the uniform at any point in the year – even one day, you are entitled to get the full year’s tax relief.
So even if you did not complete a full tax year at the job you will still be eligible for this tax relief.
Claiming for the actual work expense amount spent each year
If you feel that your expenses exceed the standard flat rate decided by the HMRC and you have receipts, you can opt to file a claim on the actual amount you spent over the last 4 years, and in the current tax year, you are filing a claim for.
However, you need to have all the receipts of your expenses to file for such a claim. Once you do, HMRC will evaluate your claim and notify you of the amount that is due to you as the Uniform tax refund.
Again, it is to be noted that you can claim the uniform tax rebate for the current year as well as claim back for the last four years, provided you have been wearing a uniform for the respective years and have also paid the income tax for those years. However, if your employer has already repaid you for your expenses, you cannot file a claim.
How to Claim Uniform Tax Relief?
Before you contact the HMRC for claiming your uniform tax rebate, it is a good idea to have all your details in hand and in one place. The details regarding your employer, your industry of work, job title, financial aid provided for maintenance of your uniform, more specifically- the cleaning or laundry services offered, etc., are a few of the essential things to be kept in mind when you make a claim.
If you are claiming a Uniform tax rebate for the first time or paid more than £1,000, you will have to fill in the P87 form and submit it either online or via post to the HMRC. If you are filing for more than one year, each year will require a separate form.
If you have filed a claim earlier, under ideal situations, your tax code will automatically get adjusted to include your costs. However, if this automatic adjustment doesn’t happen, you can get in touch with HMRC through post or over a call on 0300 200 3310.
If an employee is filing a self-assessment, he/she can add the amount to expenses. If not, they can claim the relief through:
- Letter – If this is the first time an employee is claiming work uniform relief, he/she must contact HMRC in writing. Address: HM Revenue & Customs, Pay As You Earn, PO Box 1970, Liverpool, L75 1WX.
- Telephone – Alternate option is to contact them by telephone at 0300 200 3310. Before contacting them, the following information should be kept handy
- Employer’s name and address
- Industry in which the employee works
- Employee’s occupation
- Details of any cleaning or laundry service provided by the employer
- Information on payment supplied by the employer to cover laundry and additional uniform costs.
Quick Tip: Writing ‘Repayment Claim’ on top of the envelope that you are forwarding just might speed things up for you
How and when will I get the money?
Your tax code will adjust for the current tax year, meaning you’ll be taxed less in the future and see a small boost in your take-home pay.
According to HMRC, getting a new tax code normally takes two days. However, whether you’ll see a difference in the actual pay depends on whether the employer receives it before the payroll cut-off date.
HMRC will either make changes to the tax code or grant you a tax refund if your claim is for previous tax years. You’ll get a letter from HMRC after your application has been submitted and processed, detailing how much you’re entitled to and when the money will be paid.
HMRC normally responds to a Uniform Allowance claim within 8-10 weeks.
Do I Have to Claim Uniform Tax Rebate Every Year?
A Uniform Allowance rebate claim must be for a year in which you have already paid or are currently paying tax. You can choose to either make a flat-rate claim if your new job is applicable, or you can claim for the actual amount you have spent.
How Claim My Tax Back can help with your Uniform Tax Rebate
So, if you are an employee who sadly, has to spend his own money to meet your job’s requirements- be it for traveling or buying equipment or maintenance of your uniform- you are free to claim the tax deduction that the UK government offers to UK tax-paying employees.
All the expenditures that you made on buying your uniform, your expenses on laundry, and any other maintenance expenses that you incurred, can now be made up with a reduction in the effective taxes you pay. You just need to remember to file a claim within 4 years of the concerned year otherwise you shall lose it.
And finally, it is always a good idea to keep a record of the expenses made on your uniform, just in case HMRC requires you to present them for verification at some point during the entire process.
Claim My Tax Back offers assistance in claiming back money owed to you for your Uniform Expenses. The application process is quick and easy and only takes 2 minutes. After you have submitted your online claim, it then takes between 8 to 12 weeks to find out how much you could be owed and payment will be sent to you.