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  • FIRST POST
    • Beenie
    • By Beenie 16th Mar 17, 11:57 AM
    • 1,025Posts
    • 1,103Thanks
    Beenie
    Professional fees tax relief
    • #1
    • 16th Mar 17, 11:57 AM
    Professional fees tax relief 16th Mar 17 at 11:57 AM
    My husband is now retired, but under state retirement, age so it's entirely possible that he may take up part-time or consultancy work.

    When he was working, he claimed tax relief on his professional fees, plus it was a requirement to be a member of the institute if he wanted to maintain chartered status.

    If he doesn't pay, his status lapses and he won't be able to get employment. Is it possible to argue that tax relief should still be allowed in order to maintain employability?

    It isn't the end of the world if the answer is no, but it is an interesting point.
Page 1
    • Dazed and confused
    • By Dazed and confused 16th Mar 17, 12:02 PM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    • #2
    • 16th Mar 17, 12:02 PM
    • #2
    • 16th Mar 17, 12:02 PM
    When did he retire and what income is he currently paying tax on?
    • martinsurrey
    • By martinsurrey 16th Mar 17, 12:11 PM
    • 2,829 Posts
    • 3,409 Thanks
    martinsurrey
    • #3
    • 16th Mar 17, 12:11 PM
    • #3
    • 16th Mar 17, 12:11 PM
    My husband is now retired, but under state retirement, age so it's entirely possible that he may take up part-time or consultancy work.

    When he was working, he claimed tax relief on his professional fees, plus it was a requirement to be a member of the institute if he wanted to maintain chartered status.

    If he doesn't pay, his status lapses and he won't be able to get employment. Is it possible to argue that tax relief should still be allowed in order to maintain employability?

    It isn't the end of the world if the answer is no, but it is an interesting point.
    Originally posted by Beenie
    In order to be tax deductible, the cost has to be wholly and exclusively for the business.

    So to claim it as a business expense (tax deduction) he would be claiming he is currently self employed, it is has to be for a business, not a potential business, or a potential job.

    Are you willing to claim that? is it true?
    • Pennywise
    • By Pennywise 16th Mar 17, 12:20 PM
    • 8,701 Posts
    • 15,378 Thanks
    Pennywise
    • #4
    • 16th Mar 17, 12:20 PM
    • #4
    • 16th Mar 17, 12:20 PM
    Professional membership subscriptions can only be claimed against either employment income or self employment income. If he has neither, he can't claim. In practical/simple terms, the box on the tax return to claim them is on the employment or self employment pages - there's no where else on the return it could be legitimately claimed.
    • Beenie
    • By Beenie 16th Mar 17, 12:24 PM
    • 1,025 Posts
    • 1,103 Thanks
    Beenie
    • #5
    • 16th Mar 17, 12:24 PM
    • #5
    • 16th Mar 17, 12:24 PM
    He's retired since 2014 and pays tax on an employer's pension. No self-employed earnings.

    This was a hypothetical question. He won't be making any false claims!
    • Dazed and confused
    • By Dazed and confused 16th Mar 17, 12:34 PM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    • #6
    • 16th Mar 17, 12:34 PM
    • #6
    • 16th Mar 17, 12:34 PM
    Agree with other posters, until circumstances change and he becomes employed or self employed then there is nothing he could claim tax relief against
    • dori2o
    • By dori2o 16th Mar 17, 9:54 PM
    • 7,223 Posts
    • 12,066 Thanks
    dori2o
    • #7
    • 16th Mar 17, 9:54 PM
    • #7
    • 16th Mar 17, 9:54 PM
    In theory he could tell HMRC that he is still paying these subscriptions, however, as with all claims for tax relief on expenses/subscriptions from employed income the amount of the expense on which relief is claimed is limited to to the amount of income received from the relevant employment.

    For example, if the expense/subscription claimed is 500, but the income received from the relevant employment is only 350, then the amount on which rellief can be given would be restricted to 350.

    In your husbands case, as there is no relevant employment then there is no income, therefore the amount of expense which relief can be claimed on would be 0, therefore the relief would be 0.

    As this is the case then its pointless to notify HMRC of any subscriptions as its none beneficial to him.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • Andy L
    • By Andy L 17th Mar 17, 3:15 PM
    • 8,232 Posts
    • 6,462 Thanks
    Andy L
    • #8
    • 17th Mar 17, 3:15 PM
    • #8
    • 17th Mar 17, 3:15 PM
    Does his prof association offer a reduced retired member rate?
    • Beenie
    • By Beenie 17th Mar 17, 3:28 PM
    • 1,025 Posts
    • 1,103 Thanks
    Beenie
    • #9
    • 17th Mar 17, 3:28 PM
    • #9
    • 17th Mar 17, 3:28 PM
    Yes. He is paying the reduced rates now.
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