Clothing for employees at company costs


Entrepreneurs more and more often require from their employees an outfit that distinguishes their company, related to the name and logo. Usually, they decide to incur expenses on clothing for employees to make the company more recognizable, which in turn contributes to an increase in revenues. A lot of controversy is raised by the fact that expenses for employee clothing are included in the company's costs. What if the taxpayer decides to buy clothes without a company logo? It is worth finding out when the costs of clothing for employees may be at the expense of the entrepreneur.

Clothing for employees with the company logo in company costs

As a rule, in order for an expense to be considered a tax deductible cost, it should be related to running a business and affect the achievement of revenues. Therefore, expenses on clothing for employees may also constitute a tax expense of the entrepreneur. However, you should remember about a few important issues regarding the purchased corporate clothes:

  • the outfit will have only an official character,

  • the uniform will not be used for private purposes,

  • corporate clothing must have distinctive features - it should bear the company's logo permanently associated with the clothing, to exclude the possibility of using it for private purposes,

  • wearing the uniform should be the responsibility of the worker.

Expenditure on clothing for employees, where the clothing includes the company's logo, can be treated as advertising expenditure and then is tax deductible. In addition, employee clothing should, apart from the logo, be distinguished by, for example, the color associated with a given organization.

Clothing for employees without the company's logo in tax deductible costs

However, not all entrepreneurs decide to buy employee clothes with the company's logo. It happens that they buy clothes of the same color, e.g. the same T-shirts or pants / skirts. This is due to the desire to distinguish company employees from customers - clothing for employees does not have company markings then.

As mentioned earlier, employee clothes should prevent their use for private purposes. As the expenditure on clothing for employees has been borne by the trader, it cannot be considered as business related. Expenditure on clothing for employees that do not meet certain criteria should be considered as expenses incurred for the private use of employees. Thus, they cannot constitute tax-deductible costs for the taxpayer.

The tax deductible costs include expenses for clothing for employees, but only and exclusively those whose professional nature can be proved. In this way, you will avoid unpleasantness in the event of an inspection by the tax office.