Deduct The Cost Of Professional Subscriptions

Most professions require members to pay an annual subscription to a professional association for the right to use the qualification and designatory letters.

Where the taxpayer is self-employed, a deduction can be made in computing business profits for the cost of the professional subscription where the profits from that profession are assessed on the member. Subscriptions to local professional societies or branches are also deductible if the object of the branch or society is mainly professional.

Where the subscriptions are paid by a company, they are deductible in computing the profits of the company. As long as the subscription is on HMRC’s list (List 3), the employee will not suffer a benefit in kind tax charge.

Example:
Dinesh is a self-employed accountant. He is a member of the ICAEW and pays an annual membership fee of £400. He deducts this when computing the profits of his profession.

 

This is a sample tip taken from our 136 page guide:
101 Ultimate Tax Strategies Revealed.

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