Chef Uniform Expenses and Government + Tax benefits: Clothing - Chef Uniform Hire - 07966435273 - www.brentlinenhire.co.uk
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Overview:
As an employer providing clothing to your employees, you have certain tax, National Insurance and reporting obligations.
What’s included:
This includes purchase, cleaning and repair costs for all clothing.
What you have to pay and report depends on if it's:
"
protective clothing that your employee needs to do their job"
a uniform they only wear at work
What to report and pay :
If the clothing you provide isn't exempt, you may have to report it to HM Revenue and Customs (HMRC), and you may have to pay tax and National Insurance on the value.
Uniforms or protective clothing
You must report the cost on form P11D of:
buying the clothing for your employees
lending it to them
cleaning or repairing it
If you provide uniforms or protective clothing, you can get exemptions (which have replaced dispensations). This means you won't have to include them in your end-of-year reports.
Any other clothing:
This includes clothing employees wear at work that isn't necessary protective clothing or a uniform.
If you buy other clothing for employees, or lend it to them, you must:
report the cost on form P11D
pay Class 1A National Insurance on the value of the benefit
If your employees buy it and you pay them back, you must:
add the value of the benefit to your employee's other earnings
deduct and pay PAYE tax and Class 1 National Insurance through payroll
If your employees buy any non-durable clothing (eg tights and stockings) and you pay them back, you must:
add the value of the benefit to your employee's other earnings
deduct and pay PAYE tax (but not Class 1 National Insurance) through payroll
If your employees pay to have clothing cleaned or repaired, you must:
add the value of the benefit to their other earnings
deduct and pay PAYE tax and Class 1 National Insurance through payroll
Work out the value:
The value of clothing for tax and reporting depends on whether you give or lend it and who initially pays for it.
Clothing you give to employees
Use whichever is the higher of:
the second-hand value of the clothing when you give it to your employee
the initial cost to you of the clothing
Clothing you lend to employees
Use whichever is the higher of:
20% of the clothing's market value when you first provided it
any annual rental or hire charges you pay for it
Clothing your employees buy and you pay them back for, or cleaning and repair costs
Use the amount of money you give your employee for the clothing, cleaning or repair.
Salary sacrifice arrangements
If the cost of the clothing is less than the amount of salary given up, report the salary amount instead.
These rules don't apply to arrangements made before 6 April 2017 - check when the rules will change.
Technical guidance :
The following guides contain more detailed information:
clothing
specialist clothing
uniforms
upkeep and replacement of uniform and protective clothing
More Details on
Brent Linen Hire
Brent Linen Hire
Courtesy:
www.gov.uk
gov.uk
