Tax Rebate on Professional Subscriptions?

Adamc

Hi 

I am wondering if I could claim a tax rebate on my professional subscriptions and memberships, some of which are compulsory? I also pay a lot of money for educational content related to my job. This is not compulsory as such but educational development is recommended. I work full-time in the NHS but have colleagues who are working as locums who claim the tax on everything work related.  

Cheers

pjread

Generally professional society memberships are tax deductible - HMRC has a list but if they're on there, add them on your tax return.

Training costs for PAYE employees generally aren't - if I recall correctly this follows the "wholly and necessarily" rule, so anything that isn't compulsory doesn't meet the mark.  Generally for an employee, you'd expect the employer to either directly cover or reimburse the expense for anything compulsory which saves the complexity.   

Locums are generally either self employed contractors or operating via their own ltd company, so have more latitude (e.g. their 'employer' can go buy whatever books or book whatever training they determine is necessary for them)

Flugelhorn

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

Dazed_and_C0nfused

This is the list the organisation needs to be on for professional subscriptions to be eligible for tax relief.

As others have said the other costs won't be eligible for tax relief.

If you don't currently complete tax returns then this isn't a reason to need to complete one unless the amount of professional subscriptions is £2,500 or more in any tax year.

https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3

MDMD

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

[Deleted User]

MDMD said:

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

The locums referred to are self-employed - I believe frugalhorn was making the point that more latitude was granted to them - no necessarily aspect.

Flugelhorn

MDMD said:

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

BMA was always accepted even when employed but then the Royal College memberships and fellowships were accepted too and technically continued annual membership (£400 - £600  ) is not essential once you are on the specialist register 

GMC is accepted even now I am retired, pay half rate and have no licence but still my £170 is tax deductable

[Deleted User]

Flugelhorn said:

MDMD said:

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

BMA was always accepted even when employed but then the Royal College memberships and fellowships were accepted too and technically continued annual membership (£400 - £600  ) is not essential once you are on the specialist register 

GMC is accepted even now I am retired, pay half rate and have no licence but still my £170 is tax deductable

A long time ago I heard the argument that BMA is a union fee, not a professional expense, and thus allowable against PAYE.  Perhaps that’s the reason?

molerat

MDMD said:

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

I would say the vast majority on the list would fail that test but are universally accepted by HMRC.

Flugelhorn

[Deleted User] said:

Flugelhorn said:

MDMD said:

Flugelhorn said:

Agree - more latitude for locums as they don't have an employer to provide training eg we got a course that is essential for revalidation provided by employers but if you were self employed you had to pay for it and that would be tax deductible.

re professional subs - GMC / BMA / Royal Colleges and MPS were all accepted - interestingly BMA is not essential to employment but was accepted

It is a condition of the claim for tax relief that the expenses are not only on the list but they were incurred Wholly, exclusively and necessarily in the performance of the duties,

if not essential then it would fail the necessarily test and no tax relief available.

BMA was always accepted even when employed but then the Royal College memberships and fellowships were accepted too and technically continued annual membership (£400 - £600  ) is not essential once you are on the specialist register 

GMC is accepted even now I am retired, pay half rate and have no licence but still my £170 is tax deductable

A long time ago I heard the argument that BMA is a union fee, not a professional expense, and thus allowable against PAYE.  Perhaps that’s the reason?

would make sense