If as part your job, you pay a membership fee or a subscription to a professional body, you could be eligible for tax relief on that payment. HMRC will adjust your tax code to increase your tax free allowance to take into account the payment, or if you haven’t claimed for previous years, they may even get a tax rebate of anything you have overpaid.
Professional subscriptions are paid by many employees. The payment must be made personally by you and not reimbursed by your employer. HMRC’s list of professional bodies eligible for tax relief details all bodies and institutes which are eligible.
I’m a PAYE employee
You can use HMRC form P87 to make your claim with HMRC. You’ll need to have your employment details and national insurance number to hand.
I submit a tax return
If your self employed and submit a tax return, your professional subscription is treated as a deductible expense against your profits and you get tax relief that way. If you submit a return and your not self employed, details of professional subscriptions paid can be included on the employment pages.
I trade through a limited company
If you trade through a limited company, a professional subscription for an employee or director can be paid for the by the company on behalf of the employee or director. There is no benefit in kind tax on the payment and the company receives corporation tax relief on the payment.
A third party has contacted me
There are a number of organisations who will make these claims on your behalf and will often approach you if they know you are a in a profession where you pay subscriptions. These organisations can recover any tax paid on your behalf, but they’ll usually take a percentage of the rebate. It’s relatively easy to make the claim yourself and recover all the tax due back to you.