Many taxpayers’ jobs necessitate the payment of professional fees to work related organisations.
Tax relief can be claimed on fees into most large professional bodies and many smaller ones. An initial claim can include the previous four tax years. Then your professional fees tax relief will be incorporated into your tax code, meaning that you continue to benefit from a lower tax bill.
Why can you claim tax relief for professional fees?
You may need a special licence, or require your name listed on a professional register, in order to do your job. You might also belong to an organisation whose activities are very helpful in your profession and help you in your work.
In either case, you’re likely to be obliged to pay an annual membership subscription or registration fee. HMRC acknowledges this as a work-related expense and provides a tax relief allowance.
Who is eligible for Professional Fees tax relief?
In order for their members to receive tax relief on their membership fees, organisations must make an individual agreement with HMRC. This places them on HMRC’s ‘Approved Organisations’ list. Once on this list, all taxpaying members are eligible to reclaim tax relief on their membership fee.
Additionally, tax relief is not available if:
- You’ve paid a life membership subscription
- Your employer, rather than yourself, pays the fees for membership or subscription
How much tax relief can you get?
The tax relief percentage that can be claimed is part of each organisation’s individual negotiations with HMRC (they are all different).
Making your Professional Fees tax relief claim
To claim for your professional fees for the first time a P87 form should be submitted to the tax office. If you complete a self assessment tax return you will need to include your professional fees in the relevant box on the employment page section of your tax return.
