If you need to wear work uniform or special work clothes, you may want to know more about the uniform tax rebate. Although you may be eligible for the uniform tax rebate, it does not automatically apply to your tax account. It is important for you to request for this uniform tax rebate.
Here’s what you should know about making the claim.
Claiming for Uniform Tax Rebate
Eligibility
In order to be eligible for claiming the uniform tax rebate, you have to fulfill a list of requirements:
First of all, you should be the one paying the income tax for the year that you are applying for the claim.
Next, your work clothes should clearly show that you are working for a certain job and you have to wear it while you are at work, such as a branded T-shirt.
Do note that even if you have to wear protective clothing for work that does not contain a logo, it could count towards the uniform tax rebate too.
Sometimes, your company may ask you to follow a certain dress code, such as a plain T-shirt without the company logo. Or your employer might ask you to purchase the clothes from their own store. In these situations, you are unable to make the claim according to the HMRC.
Also, if you have to be responsible for cleaning, repairing and purchasing the uniform, you can also claim the uniform tax rebate.
However, if your employers will wash your uniforms for you, or if you choose not use the laundry service that your employer provides, then the rebate is not for you.
Note that in some occupations, such as the police force, your force may have made the claim for you already. You should make sure you check before moving onto the application.
Keep the proof
When you started work for your company, you should have seen a copy of the employer’s policy. You should be able to keep a written proof that states what your work gear should look like.
For example, if you work in construction, the policy might state that the employee should wear reflective clothing that is not for everyday use and there is a cost incurred for keeping these protective clothing clean.
In any case, when the IRS asks you questions about the claim, you should be able to deduct the cost of the clothing and the laundry expenses based on the written information that you have kept.
Another type of proof that you should keep are your receipts. If you have spent money handling your work clothes, such as dry cleaning or shoe shining, you should keep those receipts for deduction.
Amount of the claims
The industry that you are in determines the amount that you will receive from the tax rebate.
Typically, the flat rate of expense allowance for your uniform maintenance in 2018/2019 is £60, meaning that basic rate taxpayers would be able to get £12 back from the rebate. For higher-rate payers, they will be able to get £24 back.
If you are a forgetful person, you may be glad to know that you can make your claims from the past four years as well. Also, you should know that if your employer has paid the expenses for you, you will not be eligible for doing this tax rebate.
There are different limitations for some specific occupations, especially for those who have specific uniforms, in which the allowance can go as high as £185. If you are a higher-rate taxpayer, you could get up to £74 tax for that tax year. These specific occupations include pilots and cabin crews.
How to make the claim
When making your uniform tax rebate, you should fill out the form P87 either online or on paper.
When you are filling out the application, you will be asked to include your employer’s name, employer’s address, your occupation, job title, industry, national insurance number, as well as your PAYE reference.
Furthermore, you should also state whether you want to be paid via your bank account or through cheque. You will also be asked whether you are making the claim as a flat rate expense.
Once you have submitted your claim, it will be processed by the Her Majesty’s Revenue and Customs (HMRC). The HMRC will then send you a letter, stating how much you will receive and the details about how you will be paid.
The claim for the uniform tax rebate usually takes five weeks to process.
After making your registration, the tax code that you receive will keep changing. You will then be taxed less in the coming years.
For any questions you have after your first claim, you can call 0300 200 3310 from 8 am to 8 pm Monday to Friday or 8 am to 4 pm on Saturday. This hotline can also provide a different format of the form for you if needed.
Administration
As part of the administration process, the HMRC will send you a form called P810 “Tax Review”. You should check carefully and see whether your tax code is correct.
For those of you who have switched to a different occupation in the tax year, you will need to fill out extra forms.
Now, you should have more details about making the uniform tax rebate. But one thing you should take note of is that you cannot make any claim for the cost of purchasing the uniform. Follow the steps accordingly and make your claim soon.
Apart from the uniform tax rebate, you might want to make other claims for your expenses at work, such as any tools that you bought for work. You will be able to find more details on the HMRC website.