Income Tax (Earnings and Pensions) Act 2003 section 367

Fixed sum deductions for repairing and maintaining work equipment

Section 367 allows certain classes of employees to claim a fixed deduction from their earnings, set by the Treasury, to cover the average annual cost of repairing and maintaining work equipment such as tools or special clothing.

• The Treasury sets a fixed annual deduction representing the average repair and maintenance costs for work equipment incurred by a particular class of employees, where those employees are generally responsible for such expenses and the expenses would otherwise be deductible under the general expenses rule.
• No deduction is available if the employer pays or reimburses the relevant expenses, or would do so if requested; if the employer covers only part of the costs, the fixed deduction is reduced by the amount paid or reimbursed.
• Work equipment is defined as tools or special clothing.
• The section must be read alongside the rule preventing double deductions, meaning that if an expense on work equipment is already deductible under another provision, it cannot also be claimed under this section.