Professional fees tax relief

Beenie

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.

Dazed_and_confused

When did he retire and what income is he currently paying tax on?

martinsurrey

Beenie wrote: »

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.

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

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

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

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

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.

Andy_L

Does his prof association offer a reduced retired member rate?

Beenie

Yes. He is paying the reduced rates now.