The stress concentration observed in the vicinity of cut-outs and holes in structural elements significantly influences the fatigue endurance of machines subjected to cyclic loads. Numerous studies have been made so far to improve this situation and increase the structure lifetime. Several design recommendations have also been worked out to avoid the problem of premature failure. The proposed article illustrates the influence of the composite overlays applied around the cut-outs made in flat steel constructional elements subjected to axial tension. The detailed study concerns the reinforcement made from the FRP (fibre reinforcement polymer) composite applied around the notches. Two types of composite materials were used, namely: TVR 380 M12/R-glass (glass fibres embedded in epoxy resin matrix) and AS4D/9310 (carbon fibres embedded in epoxy resin matrix). In the first step, the detailed numerical studies (finite element analysis) were performed for the steel samples (with no overlays added) with cut-outs made in the form of circle, square and triangle hole (the last two with rounded corners). The results of these studies were compared with the existing analytical solutions with respect to the stress concentration factors (SCF) estimation. The relatively good conformity was observed when using dense meshes of finite elements placed around the void vicinity. In the next step, the composite overlays were applied around cut-outs and their influence on the stress concentration was investigated. The influence of the fibre orientation, numbers of layers, sizes of the composite overlay used were considered. It was proved that the application of composite overlays evidently decreases the stress concentration around the notches.