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Tax relief on professional subscription fees - help!
I have recently put in a claim for backdated tax relief on union membership fees to April 2018.
HMRC have sent me revised Tax calculations for the tax year 2018-2019 and 2019-2020, and where it shows the calculation for professional fees, it says:
"Estimated fees = £0, Actual Fees = £xx The professional fees or subscriptions you received were less than the fees or subscriptions you paid"
I don't understand - I didn't receive any fees! I paid fees! Does that mean I haven't been granted tax relief on union fees for these years? Why might that be? (The fees I paid were to an HMRC recognised education union). Do I need to go back and query it with them?
TIA!
Comments
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Is that all it says- seems very strange!0
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Do I need to go back and query it with them?
The wording seems wrong so you could but isn't the more important thing whether you have received the tax relief or not?
You should be able to tell that from the calculation (P800?). The subscription works a bit like an extra tax free allowance so should reduce your income liable to tax in the same way your Personal Allowance does.
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"Estimated fees = £0, Actual Fees = £xx The professional fees or subscriptions you received were less than the fees or subscriptions you paid"
What is wrong with that?
Whilst it may seem to be clumsy language you have claimed the cost of your professional subscriptions and if no one such as your employer has contributed towards your costs, the HMRC statement is absolutely correct.
Another way of looking at it is:- You are entitled to tax relief on professional subscriptions that came out of your pocket.
What is really important is how HMRC have calculated your repayment and whether they have repaid you.
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It's clumsy wording from the tax office but it's correct. They estimated you had paid £0 in fees, but you have actually paid £xx.
So overall you should be getting a refund0
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