Can I claim NMC tax relief?
If you pay for your own NMC fee you will qualify for an NMC tax rebate.
All registered Nurses must register with the Nursing Midwifery Council (NMC) and most pay for it themselves. An agreement is in place that means you can reclaim tax paid on the full NMC registration fee.
How far back can I claim an NMC tax rebate for?
Four years is as far back as you can go. With your initial claim you’ll get the tax relief you are owed for the last four years and get a new tax code, meaning you reduce the amount of income tax you pay in the future too.
Are NMC members eligible to claim for anything else?
It’s likely that as a nurse or healthcare professional you’ll pay for other things that HMRC classify as ‘work expenses’.
Tax relief can be claimed back on many of these costs. For example:
- Professional bodies like the Royal College of Nursing.
- Trade Union membership.
- Cleaning your uniform, where your employer does not have the necessary laundrette facilities, or give you any laundry cost compensation.
- Shoes and tights.
- Driving your car in the completion of your duties, but not for normal commuting.
- Equipment that you have to buy for work.
How much is an NMC tax rebate worth?
The NMC fee currently costs £120 per tax year. You can claim a tax rebate worth either 20% or 40% of the annual fee.
The percentage of tax relief depends on if you are a higher tax payer (40%) or basic rate tax payer (20%). In addition to the NMC fee you can add into your claim any other work related costs at the same time.
How to claim your NMC tax rebate
The tax office let you claim for your NMC and any other costs either online or by post. If you need any help you can call HMRC directly and they will assist you.
The method of claiming tax relief on your NMC membership fee depends on whether or not you complete a self assessment tax return in the year you make the claim.
P87 NMC tax rebate:
In cases where a tax return is not needed nurses should use HMRC form P87 to submit their NMC claim.
The P87 form can be completed online or downloaded and sent by post to HMRC. It’s worth noting that one P87 form allows for claims covering up to four consecutive years, making it convenient for filing multiple years’ worth of NMC rebate claims.
You should expect to get a response and any tax rebate due from HMRC in about 8-12 weeks.
HMRC will typically pay your refund into the bank account you have provided on your P87 or by cheque.
NMC tax rebate through self assessment:
You would need to have employment expenses worth £2500 or more to need to complete a tax return or have a different reason like self employment.
For individuals who do file a tax return it’s necessary to include the value of your BMA membership fee (as well as any other eligible professional fees and tax reliefs) in the employment section of your SA return.
Once HMRC has processed your tax return they will calculate and refund any income tax owed to you through self assessment.
NMC tax rebate P800 tax calculation
HMRC will generate a P800 tax calculation letter for each tax year of your claim and post it to you.
The P800 tax calculation will show you how HMRC have worked out your tax rebate. It’s worth checking each calculation so you can tell HMRC if you think anything is wrong.
NMC tax rebates and your tax code
After processing either the P87 form or the tax return HMRC will issue an updated tax code that reflects both the annual value of your NMC membership fee and any other eligible professional fees and reliefs.
This adjustment ensures that you receive appropriate tax relief for your employment expenses throughout future tax years by paying less income tax through your pay.
If you ever stop paying membership into the NMC or receiving allowances which are included in your tax code you should notify HMRC so they can amend your tax code.
