Is an uniform allowance taxable

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

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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.

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Replying to Viciuno:
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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).

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