Work clothing can be a significant expense item within your company. Especially when you have a larger workforce, the costs can increase considerably. We are regularly asked whether work clothing is tax deductible. To clarify this issue, we will explain the tax deductibility of work and company clothing in this article.
What is considered work clothing?
To prevent everything from being classified as work clothing, the tax authorities have drawn up a number of conditions that must be met work clothes must comply.
Clothing is work clothing if it meets one of the following conditions:
- The clothing is (almost) only suitable for wearing during work, such as a lab coat or a dustcoat.
- The clothing contains one or more clearly visible image features of the employer, such as a company logo. Together, these have a surface area of at least 70 cm² per garment. You calculate this surface area with an imaginary rectangle around the outermost points of the logo.
- The work clothing is demonstrably left behind at the workplace.
- The work clothes are a uniform or overall. If a group of employees wear the same clothing, which is also associated with a company or profession outside the work environment, then that clothing is a uniform. For example, the work clothing of police, military personnel and stewardesses. A driver's black trousers with a blue blazer is therefore not a uniform. If a piece of clothing is part of a uniform, then that piece of clothing is also work clothing. It does not matter whether this separate piece of clothing is recognized as a uniform or not and whether it can be worn outside of work.
- You reimburse, provide or make the clothing available because the Working Conditions Act prescribes this, as is the case with safety shoes. The following conditions apply:
- You have an occupational health and safety plan
- The work clothing is required according to the occupational health and safety plan.
- The work clothing is mainly worn during working hours.
- The employee does not have to pay any personal contribution.
Source: Tax Authorities
Deductibility 
But to what extent is the clothing actually deductible? If you have determined according to the above conditions that the company clothing falls under the category of work clothing, you can deduct the “entire costs” of this from your taxable profit. This means that the part of the profit on which you have to pay tax decreases and you have more money left after paying profit tax.
If you are allowed to make the work clothing available tax-free, you may also reimburse the cleaning costs taxed. A reimbursement of these cleaning costs to your employee falls under the reimbursements for intermediate costs.
NB
Other clothing that is needed for work, such as a suit or a pair of smart trousers, unfortunately does not fall under deductible work clothing. Since 2001, the law has changed and such clothing has become completely tax-free.
Embroidery or printing of your corporate clothing
Functional work clothing with your logo embroidered or printed on it gives a professional look, is recognizable, representative and contributes to your corporate identity. As mentioned earlier in this article, work clothing with a clearly visible image feature (or company logo) is also tax deductible if these image marks together have a surface area of at least 70 cm² per garment. Unishore Workwear has years of experience in embroidering and printing work clothing. Want to know more? Contact contact us or ask a question quote On.
More information about embroidery More information about printing
Frequently Asked Questions
When is work clothing tax deductible?
Work clothing is tax deductible if it is only worn during work and is not suitable for private use. This applies, for example, to overalls, safety clothing or clothing with a clearly visible logo of at least 70 cm². The deductibility expires if the clothing can also be worn outside working hours without a visible feature. The costs must also be commercially justified and demonstrably used within the company. So make sure you have good administration and clear invoices.
Is it mandatory to place a logo on work clothing?
Placing a logo on work clothing is not legally required, but it is important if you want to deduct the clothing from your taxes. The Tax Authorities stipulate that the clothing must have a clear and permanently applied company logo of at least 70 cm². This shows that the clothing is intended for work and cannot be worn privately. Without a logo, the clothing is only deductible if it concerns specific work clothing such as uniforms or protective clothing. A clearly visible logo therefore helps with the fiscal substantiation.
Are personal protective equipment (PPE) tax deductible?
Yes, personal protective equipment (PPE) is fully tax deductible if it is necessary for the work. Think of helmets, hearing protection, safety shoes and goggles. The costs for this may be booked as business expenses, provided that you can demonstrate that they are used exclusively for business operations. PPE provided to employees is also exempt from payroll tax. It is important that the resources meet the statutory occupational health and safety requirements.
Do I have to administer the costs for work clothing separately?
Yes, it is wise to administer the costs for work clothing separately in your accounting. This way you can easily demonstrate that it concerns business expenses, especially if you want to deduct these costs from your taxes. In addition, it is clear in the event of an audit by the Tax Authorities. Clearly state whether the clothing has a company logo and whether it is worn exclusively for business purposes. This prevents discussions about private use.
