Security Worker Tax Refunds
If you are a worker in the security industry, you may be able to get a tax refund for certain expenses. This is because you are entitled to claim tax relief on certain costs of your employment deemed “wholly and necessarily” for your employment. This basically means you can claim back for the cost of things that you need to do your job.
Uniform Tax Rebate
UK security workers are generally eligible for tax relief for the cost of purchasing and laundering their uniforms. The amount you can claim and receive as a tax refund depends on your circumstances.
Without receipts, you can claim a fixed amount, which varies by industry and job role. Based on current government advice, security guards are eligible to claim £80 as a fixed amount (or flat rate) for uniforms, clothing and tools, but this may be different if you have a different role. Your best bet is always to try to speak to a tax advisor or HMRC directly.
On the other hand, if you keep detailed records of your uniform costs, you can claim the exact amount you spent. If you opt for the actual expense method, keep detailed records of:
Uniform purchases
Laundry costs
Any repairs
Remember that you can claim for up to four previous tax years.
Eligibility and Claiming Methods
To claim tax relief for your security uniform and its laundry, your uniform must be:
Recognisable: Clearly identifiable as belonging to a specific employer.
Mandatory: Required by your employer.
Separate: Not suitable for everyday wear.
Some third parties like Uniform Tax Rebate can help you claim with HMRC even without detailed receipts, as they will contest this decision if they can.
Can I claim for my SIA Licence?
You can also claim tax back on the cost of your SIA (Security Industry Authority) registration. This means you can reduce your taxable income by the amount you spent on obtaining your SIA licence. Remember that you can typically claim tax relief for up to four previous tax years.
So, how can you calculate potential Tax Savings on Your SIA Licence? Calculating the exact tax saving from claiming your SIA licence cost depends on your overall income and tax rate. Here's a simplified example: If you paid £184 for your SIA licence and are a basic rate taxpayer (20%), you could potentially save up to £36.80 in tax.
However, this is a simplified example. Your actual savings might be different based on several factors, including:
Your total income: The higher your income, the more tax you pay, and therefore the potential saving is higher.
Other deductions: Any other deductions or allowances you claim can impact your overall tax bill.
To accurately calculate your potential savings, you might want to use a tax calculator or seek advice from a tax professional. Keep in mind that claiming tax relief doesn't mean you get the full amount back. It reduces the amount of tax you owe.
How to claim for tax rebates
To claim tax relief on expenses related to your role as a security guard, including the cost of your SIA licence and uniform, you have two options:
Online: Submit your claim through the government's self-assessment tax return system.
Paper: Complete a P87 form and send it to HMRC.
Regardless of the method, ensure you retain copies of your SIA licence payment and uniform-related receipts as proof for your claim. These will be essential if HMRC rejects your claim and you must contest it yourself or via a third party.
For more information on how to claim or any other details on tax rebates with HMRC, ensure you check official government sources first, such as https://www.gov.uk/guidance/job-expenses-for-uniforms-work-clothing-and-tools
How PARiM can help expense claims
PARiM security workforce management software provides an unlimited staff database for storing all employee information, including certificates such as the SIA licences. As PARiM also calculates employee hours and salaries, the tax savings on SIA licences will be easier to manage, whether this is done from the employer’s or employee’s side.
PARiM also offers a dedicated asset management module for managing all work equipment, including uniforms. You can upload receipts for each piece of uniform to ensure that you can maximise the tax deductions with the actual expense method.
