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AIA

Employee deductions for fees and subscriptions

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18th May 2007
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“List 3” is the list which shows which fees or contributions of professional bodies or learned societies may be deductible for tax against employment income per s 343 ITEPA 2003. The list has been updated
following a typo on a pdf and is valid from September 2006. A further typo on the announcement is that it still gives the old ICTA reference of s 201.

Statutory fees or contributions shown in the list are allowable where employees pay then out of their emoluments and are required to pay this as a statutory condition of following their employment.

An annual subscription to a body shown in the list as approved by the Board is allowable where employees pay this out of their emoluments and the activities of the body are directly relevant to the employment.

The activities of a body are directly relevant to an employment where the performance of the duties of that employment is directly affected by the knowledge concerned or involves the exercise of the profession concerned.

If your subscription is not on the list, then it is necessary to make a claim under s.336 ITEPA 2003, as this is near impossible and so probably not worthwhile. A solution could be to lobby your professional body to request them to get onto the list, or else persuade your employer to pay the fee on your behalf.

The self-employed do not have the same problems claiming deductions because s.34 ITTOIA 2005 is not as stringent as s.336 ITEPA, and there is no equivilent to s.343-344 ITEPA either (deductions for professional membership fees and subscriptions within ITTOIA (s.34 covers most expenses). Depending on your business you will be a member of all sorts of trade associations and bodies for a range purposes - for acquisition of knowledge to networking.

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By User deleted
16th Jul 2008 22:12

Subscriptions
I included the subscriptions paid on behalf of our employees on their P11Ds. The subscription body doesn't show on List 3. However, the employees don't feel they should pay tax since their membership to this body is required in order for them to perfom their duties. Is a dispensation an option to this dilema?

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By User deleted
21st May 2007 15:56

List 3
Nikki - where does a professional body send an application for inclusion on list 3?
Thanks

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By Phil.Colver
22nd May 2007 12:42

List 3 Applications
IRH

Applications for inclusion on 'List 3' should be sent to
Jackie Miller
HMRC
Sapphire House
550 Streetsbrook Road
Solihull
West Midlands
B91 1QU

Tel 0121 713 4600

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By User deleted
22nd May 2007 16:46

Thank you Phil
I was struggling to answer!

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