One of the things i am most often asked by clients, is whether they can claim work clothes as a tax deduction. The good news is there are certain circumstances where you can claim work clothing as a legitimate tax deduction… but of course there are some guidelines that need to be adhered to.
Do you:
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- Wear a uniform which has a distinctive corporate logo on it?
- Work in an environment that requires you to wear or use protective clothing or equipment? (eg steel capped boots, gloves, rubber boots and other personal protective equipment; sun protection if you work outdoors; overalls and aprons to protect regular clothes; etc)
- Wear clothing that is specific to your occupation (eg a barrister’s wig and gown)?
If you fall into one of these categories, you can claim the cost of the uniform (unless it has been provided by your employers) and as well you can also claim the cost of laundering and maintaining the uniform (repairs and alterations).
Your accountant is well placed to clarify this for you, as there are some unusual circumstances that may seem a little difficult to initially interpret. At the end of the day, the ATO will consider what’s reasonable use within their guidelines.
Remember:
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- It isn’t enough that your employer requires you to wear black pants. It must be recognisable as a corporate uniform and can’t be something that is everyday street wear.
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- You must have receipts for all items.
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- If equipment costs more than $300, it can’t be claimed outright and must be claimed over a number of years.
- If the expense is used for both business and personal purposes, you can only claim that part which relates to work, as a cost percentage, and be able to justify how it was calculated.
Do you have further questions about your specific occupation and what’s an allowable work-related clothing claim? I’m more than happy to chat with you and offer a FREE 30 minute initial consultation which you can book online here!