Tax Tabbing
Tax tabbing provides a simple way of overcoming the personal tax aspect of staff clothing. Tax tabs can be manufactured & affixed to any garment.
Companies and personnel professionals are not always aware of the tax rules regarding uniforms.
The Inland Revenue enforce a tax on 'plain' items of clothing that are issued free of charge to employees. Clothing issued free by the employer is considered a 'fringe benefit' to the employee as it could be worn outside of the work environment without being clearly identified as having been issued by the employer.
The tax liability of 20% of the cost price can be applied to either the employee or the employer if the issued clothing has not been clearly and permanently logo'd. This requirement is not well broadcast by HM Revenue and not all companies are aware of it. Removable identification, such as a pin-on badge, will not satisfy the requirement, as the clothing is effectively unmarked once the badge is removed.
For suiting products this is done by using a woven 'tax tab' sewn into the seams of the garment which can be clearly visible when the garment is being worn. Embroidered or printed logos are branded on all other products including t-shirts, fleeces and aprons. This distinguishes the garment as work wear as opposed to leisure wear and complies with HM Revenue regulations.
