If you have to pay union fees because of your job it is likely you can get tax relief on the annual cost.
Many unions have an agreement in place with the tax office (HMRC), which allows for tax back to be claimed on union subscriptions for the last four tax years.
A successful union tax rebate claim can result in a tax rebate for up to the last four tax years and help you reduce your tax bill moving forward.
When can you claim union tax relief?
If you belong to a union for the industry in which you work and you pay membership subscriptions, fees, or dues, you may not only be able to receive a union tax rebate for past years, but also reduce the amount of tax you pay in the future by a change in your tax code.
You are eligible for a union tax rebate if:
- You are a member of a professional union for your industry.
- The tax office has approved the union of which you’re a member.
When you can’t receive a union tax relief
If your union has not been approved by the tax office, you will not be able to receive tax relief.
In addition, union tax rebates are not available in cases where:
- You’ve paid for a lifetime membership to a union.
- Your employer pays your union membership fees (you must have paid with your own money).
How much is union tax relief worth?
The amount you are due back depends on the agreement in place between your union and the tax office.
Some agreements allow tax relief on the full union fee but some only allow a percentage.
Tax relief will be applied at the highest rate at which you pay income tax which is normally at 20% or 40% for higher rate taxpayers.
It’s not just Union fees that are eligible for tax relief – you can claim for other expenses like your work uniform or for tools you buy for work.
How do I find out if I can claim tax relief on my union fees?
The organisation(s) you are a member of should be able to tell you if tax relief is available on your subscription fees.
If you are unsure if your union has an agreement in place with HMRC you can use HMRC’s approved learned socities and professional organisations online list.
Professional bodies often have tax relief agreements in place with HMRC as well so if you pay into a professional body you should check the list for these as well.
How do I claim a tax rebate on union fees?
You can use our tax relief for employment expenses guide to find out more about what you can claim back and how to make your claim directly with the tax office.
Unless you already complete a self assessment tax return for a reason other than work related expenses or your claim is for more than £2500 you should complete a form P87 which can be submitted to HMRC online or by post.
The P87 let’s you include the previous four tax years and after a successful union tax back claim your tax code will normally adjust to include the value of your union fees and any other allowable job expenses.
Your tax code changing in this way will mean you will receive tax relief for your union fees by paying less income tax throughout the tax year.
