Claiming tax back on union fees offers substantial financial benefits for UK workers, with basic rate taxpayers receiving 20% tax relief and higher rate taxpayers earning 40% back on their annual membership costs.
For example, if you pay £82 in union fees annually, you could reclaim between £16.40 and £32.80 depending on your tax bracket – money that rightfully belongs back in your pocket.
Union members can also be entitled to claim back tax relief on some professional fees and other work related costs.
The process has never been simpler thanks to HMRC’s online platform allowing you to submit your Union fees tax rebate claim digitally with supporting documentation.
Union fees tax relief represents a valuable opportunity for individuals paying subscriptions to approved professional bodies.
By understanding your eligibility and following the correct claiming procedures through HMRC, you can recover up to 45% of your annual membership fees depending on your tax bracket.
When can you claim Union tax relief?
- You are a member of a professional union for your industry.
- The tax office has approved the union of which you’re a member.
- You have paid tax in the tax year(s) of your claim.
When you can’t receive a Union tax relief
If your membership is optional or primarily for career advancement rather than a requirement for your current role, it may not qualify for 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).
- You didn’t pay tax in the year of your claim.
How much is the 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.
For example workers in the healthcare sector who are members of UNISON can claim back tax relief on two thirds of their annual fee.
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.
If you keep paying for your membership the relief should be given through your tax code (after a successful claim) meaning savings can add up well into the future.
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?
To file a claim for Union fees with HMRC, you must submit either an online iForm, a P87 form, or a self assessment tax return.
Online claims: HMRC’s online iForm can be accessed here for claims under £2,500.
Postal claims: The P87 form is appropriate for claims under £2,500 and is for those who don’t file tax returns for other purposes (such as property rental income).
When submitting a P87, HMRC typically requires proof of purchase receipts. It’s advisable to retain copies of any receipts posted to HMRC.
Self assessment: For claims exceeding £2500 in a single tax year or you complete a tax return normally, you’ll need to enter your Union fees in the employment section of your return.
How will my tax relief be provided?
The method of receiving your tax relief varies based on your situation and how you make your claim:
- For ongoing tax year claims, HMRC modifies your tax code, which lowers your PAYE tax payments for the remaining and future tax years. This means you don’t need to make a claim each year if nothing changes.
- For claims from previous years, you’ll normally get a tax rebate via cheque or bank transfer.
- When claiming through self-assessment, the relief forms part of your complete tax calculation.
Checking your tax code after a successful claim through your personal tax account or the HMRC app is recommended.
Can I claim tax relief from previous years?
Yes, you can claim tax relief on professional fees for up to four tax years prior to the current one.
This means if you’ve been paying eligible professional subscriptions but haven’t claimed relief, you haven’t necessarily missed out.
Be aware that there is a strict time limit; claims must be submitted within four years of the end of the tax year to which they relate.
What documentation do I need to make a claim?
When claiming Union fees tax relief, you should keep records of all subscription payments, including receipts or statements from the professional body showing the amount paid and date of payment.
If claiming via form P87 or online form, you will normally have to attach proof of payment with your initial claim.
You’ll also need your National Insurance number, PAYE reference, and details of your employer.
You’ll need to list each membership separately on your claim form or self-assessment return, along with the respective amounts paid.
There’s no limit to the number of eligible professional subscriptions you can claim for, but HMRC may scrutinise claims for multiple memberships to ensure each is genuinely required for your current employment rather than for general career development.
Can Union members claim for other work expenses?
You can also include other eligible work-related expenses in the same submission.
Please be aware that you will need to provide proper documentation and proof to support most of these claims.
Common allowable work expenses include:
- Costs for cleaning and maintaining your work uniform or protective clothing.
- Professional membership fees.
- Travel expenses when using your personal vehicle to reach temporary work locations.
For more information about additional entitlements, browse our tax guides which contain various topics relevant to PAYE workers.
