Can Creative Businesses Claim Tax Relief on Branded Clothing?

If you run a creative business — whether that’s a design studio, film crew, or production agency — you want your team to look polished and professional. Branded clothing can help your business stand out, create a unified team identity, and promote your brand.

But what’s the tax position when you kit out your team with logo-embroidered t-shirts, hoodies, or jackets? Can you claim the cost as a business expense? Will your team face a tax bill for receiving “free clothes”? Let’s break it down.

The Golden Rule: It Must Be Uniform

HMRC generally sees most clothes as something your employees could wear outside work, even if you only intend it for business use. Ordinary clothing is considered a personal benefit, and you won’t get tax relief on it.

The exception is when the clothing is clearly part of a uniform or protective gear. For branded items, HMRC’s rule is simple:

If the clothing is “readily distinguishable as a uniform” because it carries a permanent and conspicuous logo, it qualifies as workwear.

So a t-shirt with your agency’s logo printed large and clearly visible is fine. A plain black shirt or subtle branding? That’s likely to be seen as normal clothing — no tax relief.

Tax Treatment for the Business

If it qualifies as a uniform or protective gear:

✅ You can claim tax relief on the full cost.

✅ You can reclaim VAT if you’re VAT registered.

✅ No Benefit-in-Kind charge for your team — they won’t pay tax or NICs on receiving it.

If it doesn’t qualify (e.g. you buy smart clothes for a shoot or event but there’s no logo):

❌ The cost isn’t deductible for tax.

❌ You can’t reclaim VAT.

❌ HMRC could see it as a benefit to your employees, meaning extra reporting.

Protective Clothing

It’s worth noting that protective gear — hi-vis jackets, steel-toe boots, or PPE used on set — is fully allowable, regardless of logos. This is straightforward to claim as a business expense.

What About Freelancers?

If you’re a sole trader or freelancer, the rules are broadly the same. You can’t claim tax relief on everyday clothes, even if you only wear them for work. Only branded uniforms or genuine protective gear qualify.

Best Practice for Creative Businesses

• Go bold with branding: Make the logo big and obvious — subtle is stylish, but won’t satisfy HMRC.

• Document purchases: Keep invoices showing the branding details.

• Stay consistent: If you provide uniforms, make them standard issue across your team.

• Budget for it: This can be a tax-efficient way to invest in your brand and present your business professionally.

Bottom line

If your creative team is rocking branded t-shirts, hoodies, or jackets that clearly identify your business, you can generally deduct the cost and reclaim VAT. If you’re buying stylish, plain clothes for shoots or events, HMRC will almost always treat that as personal clothing — no tax relief.

When in doubt, go big on the logo and keep those receipts.