As we complete accounts and tax returns for the 2012 tax year it has become noticeable that clients are often seeking to claim tax deductions for clothing. For clothing to be an allowable deduction there must be a connection or relationship between the expenditure incurred (the clothing purchased) and the income earned. No deduction is allowed for expenditure that is of a private or domestic nature.
Protective clothing must be used to protect or maintain the wearer, or the wearer’s normal clothing however the term does not extend to the normal clothing itself.
A deduction for protective clothing can be claimed provided the following items are used in deriving assessable income:
- Work gloves
- Welding goggles
- Work boots
- Safety glasses
- Rain gear
Protective clothing does not include socks, jeans or shirts as these items are deemed to be clothing used for normal everyday wear and thus are expenditure of a private or domestic nature.