Are you a member of a professional body or organisation and pay subscription fees for annual membership? If so then did you know that you can claim tax relief on the cost of the membership?
This is an often overlooked area of tax relief and can mean you are potentially paying more tax than you need to.
This can apply to both employed or self employed workers, and can reduce your tax bill by claiming relief on any payments made for professional fees and subscriptions.
When we talk about professional fees or subscriptions we mean if you have registered, obtained a licence or become a member of the organisation in question because it’s necessary to your work and the organisation is approved by HM Revenue & Customs (HMRC).
For example, if you are a medical professional you may be required to maintain a membership with the British Medical Association (BMA). As the BMA are on HMRC’s approved list the annual membership fees would qualify as a tax deductible expense.
HMRC say you can reclaim tax on fees or subscriptions paid to professional organisations that have been approved by HMRC.
In order to be eligible, the membership you pay for must be necessary for you to do your job or if it is helpful to your work.
You cannot claim for tax relief for any fees or subscriptions you pay to organisations that are not on the HMRC approved list, or for fees that are paid for by your employer.
Every professional organisation on the approved list has their own agreement with HMRC regarding the level of tax relief members are entitled to for their fees and subscriptions.
Each body, organisation and trade union has independently agreed a rate with HMRC, so it’s not possible to provide an accurate estimate on how much tax you could claim back.
For more information on making a claim for tax relief, apply now…
If the professional organisation or body is on the HMRC’s approved list, then you will be able to offset the subscription or membership fee against your income when it comes to calculating your annual tax bill. In order to be able to claim tax relief you actively have to make a claim with HMRC, as it is not given automatically. The tax relief is usually given as an allowance in your PAYE code, which is used by your employer when working out your monthly pay.
If you do a Self Assessment Tax Return then you can submit a claim for tax relief on your professional fees and subscriptions within your Tax Return (box 19).
However your taxable pay is calculated, we can help you make a claim for relief on your professional fees and subscriptions. For more information get in touch with our tax experts today.