Is an uniform allowance taxable

Employer is paying an uniform allowance to staff that are on the minimum wage rate.

Didn't find your answer?

Following the wagamame saga, one of my client is now paying an uniform allowance but only to the staff on minimum wage.

I would think that the uniform allowance of 5p per hour is taxable. Am I right?

Replies (4)

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Danny Kent
By Viciuno
10th Jul 2024 11:14

Believe so, can't think of any reason it would not be.

Thanks (1)
Replying to Viciuno:
By crebourret
10th Jul 2024 11:31

much appreciate

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By FactChecker
10th Jul 2024 12:35

The Wagamama saga ... via BBC archive:

"Restaurant chain Wagamama has been fined an undisclosed amount for failing to pay staff the National Minimum Wage.
Wagamama has repaid an average of £50 to 2,630 employees ... and blamed "an inadvertent misunderstanding" of the rules on staff uniforms for the blunder.
The company said it had asked front-of-house staff to wear black jeans or a black skirt with their Wagamama-branded top.
This was considered as asking them to buy a form of uniform, "and so we should have paid them for it," it said."

So, if your employer/client is following exactly that scenario, then yes the payments are earnings (and so will be liable to tax/nics/etc within PAYE processing).

Thanks (3)