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Professional Subscriptions and P11d

Professional Subscriptions and P11d

I am a bit confused about the following:

a) If an employee pays their own professional subs, and is not re-imbursed, they can claim a deduction against their tax, ie a higher rate tax payer, paying a sub of £200 is in effect £120 out of pocket

b) Employee pays the sub and is then reimbursed by company. Company puts the value on P11d, and employee is taxed on this amount. Employee is in effect £80 out of pocket.

Whilst the employee is obviously better off if the company pays the sub, the tax treatment is different.

Have I missed something here? Is the employee also entitled to claim a deduction for fees paid, given that he is taxed on the reimbursement?

Thank you in advance,


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07th Mar 2011 09:22

Employee should still claim a deduction on tax return/by letter

If the item has been included on the p11d, the employee will be taxed on this amount unless they claim a deduction, which they can either do on their tax return, or via letter under s336 of ITOIA 2005.  Assuming of course that the subscription is on "list 3"

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By tom123
08th Mar 2011 08:44

Thank you for that confirmation

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