Do you pay a professional subscription? If you do, you may be able to claim tax relief on it!

Am I eligible?

You’re eligible to claim as long as you’ve paid the subscription because your job/profession requires it, or it’s helpful for your job/business.

The professional body must also be approved by HMRC. They’ve recently updated the list of approved bodies here It’s a looooong list!

You can’t claim tax relief if:

  • Somebody else paid it for you (eg your employer); or
  • The body isn’t on HMRC’s approved list; or
  • It’s a life membership

Example

I’m a member of the Institute of Chartered Accountants in England and Wales. Can I claim tax relief? Let’s work through the steps:

  1. Do I need the membership? I don’t need it, but it’s definitely helpful as the owner of an accountancy firm.
  2. Is it an approved body? Yes – it’s on the list
  3. Have I paid it myself? Yes
  4. Is it a life membership? No – I pay annually

Therefore, I can claim tax relief.

How do I claim the tax relief?

If you’re a business owner, the business can pay the subscription and claim Corporation Tax relief.

If you’re an employee, or have paid the subscription personally, you can claim it by one of these methods:

  • If you already have to file a Self-Assessment Tax Return (SATR), you include the expense in your return
  • If you don’t already file a SATR:
  • You can make claims for total annual subs under £2,500 by filling in a form P87or by ringing HMRC on 0300 200 3300
  • If the total annual subs are over £2,500, you will need to file a SATR

So, take a look at your professional subscriptions, and see if you can claim.

If you found this useful, please share it using the icons at the top and bottom of the page, or leave a comment below.

Any questions?

If you’d like a meeting or a Skype call with a Liverpool accountant to discuss this, please give us a ring on 0151 380 8080 or drop us an email at growth@jondaviesaccountants.co.uk.