Claiming tax relief as an employee on professional association dues?

kissinger

So I've just tried to ring HMRC's helpline and wouldn't you know it they are unable to take any calls right now, so maybe you guys can help me.

I started a new job in UK higher education last year and am about to join a professional association that's on HMRC's approved list of bodies. What I'd like to know is:

1) What is the exact procedure for claiming the cost of joining that body back?

2) Am I right in saying I will get the full cost of membership back as tax relief, given that it's not a union or other unapproved body I'm joining? And,

3) How do I receive the tax relief? I.e., will I get a cheque in April or will I simply have less PAYE deducted next month/spread over the rest of the year?

This is the first time I've ever claimed any tax relief so any help/advice would be appreciated.

agrinnall

Call HMRC and tell them how much your subs are, and they will increase your tax code by that amount. So for me my tax code is 1060L, my subs are £200, so my new code is 1080L.

I guess you could do it by letter but they take so long to deal with mail that you're far better persevering on the phone - call early to have the best chance of getting through, 08:00.

You won't receive the relief, you'll just never pay the tax in the first place.

kissinger

I'll try calling tomorrow then. But you get the full amount of whatever your subs cost?

Wooftastic

Yes, if it's on their approved list but usually you can't claim until the following tax year. I.e. I claimed by fees for 2014-2015 in April 2015.

kissinger

Tried calling HMRC again this morning. They keep you on the phone for 5 minutes talking to a f**ing robot then they tell you they can't take your call because all their advisors are busy. Useless organisation.

TrickyDicky101

kissinger wrote: »

I'll try calling tomorrow then. But you get the full amount of whatever your subs cost?

You get full relief for whatever your subs cost, not a refund of the actual costs.

Hence you end up effectively paying your subs out of pre-tax income - but you still have to earn that income to pay the subs.

If you are a basic rate taxpayer and your subs cost £100 then effectively you get £20 (20%) relief.

kissinger

TrickyDicky101 wrote: »

If you are a basic rate taxpayer and your subs cost £100 then effectively you get £20 (20%) relief.

Sorry just to clarify, if my fees are £100 I get just £20 in tax relief, which means I'm still out of pocket for £80?

I called today (had to wait 50 minutes on hold!) and they said they would put me on a new tax code so that I don't start paying until a higher level, with the difference being the amount my subs cost. So I guess that means that I'm not taxed on the portion of my income I spend on these membership costs, but I don't get anything like the full cost back?

TrickyDicky101

Correct - you are not taxed on the portion of your income that you use to pay for your professional subs.

since your tax rate will (likely) be either 20% or 40% this is the proportion of your subs cost that you 'save' (or get relief for).

agrinnall

Wooftastic wrote: »

Yes, if it's on their approved list but usually you can't claim until the following tax year. I.e. I claimed by fees for 2014-2015 in April 2015.

Not true at all, my tax code has been changed to take account of the subs I am paying now, and that's been the case since I first claimed 3 years ago.