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Claiming tax relief on your professional memberships is one of the easiest ways to reduce your tax bill, yet thousands of people miss out every year simply because they don’t realise they’re eligible. Whether you’re paying annual fees to a professional body, a union, or a recognised industry organisation, you could be entitled to money back from HMRC. Here’s a simple, clear guide to help you understand what you can claim, how it works, and how to make sure you’re not leaving your hard-earned cash on the table.
What are professional membership tax reliefs?
If you pay for professional memberships for your job, you might be throwing money away by not claiming tax relief. Many UK workers pay yearly fees to professional bodies, with annual membership and annual subscriptions being common types of fees, but don’t realise they can get some of this money back from HMRC.
These subscriptions often cost hundreds of pounds each year, so the tax savings can really add up! These membership fees or annual subscriptions are tax deductible if paid to HMRC, approved professional organisations. Claiming these deductions reduces your taxable earnings.
How does tax relief on professional memberships work?
Tax relief on professional memberships means you can claim back the tax you’ve paid on fees to approved professional organisations. Employees can get tax relief on fees paid to professional organisations if the membership is required for their profession. You can only claim for memberships that are necessary for your job, not just ones that are nice to have.
The membership must be with an approved body on HMRC’s list of professional organisations. The membership must also be relevant to your profession and paid to professional organisations for which tax relief is available. The amount you save depends on your tax rate. Basic rate taxpayers get 20% back, higher rate taxpayers get 40% back, and additional rate taxpayers get 45% back.
For example, if you pay £200 for a membership and you’re a basic rate taxpayer, you could claim £40 back. You can’t claim for memberships your employer has already paid for (that would be cheeky!).
Which memberships can I claim tax relief on?
Not all professional memberships qualify, they need to be on HMRC’s approved list. Common examples include accounting bodies like ICAEW or ACCA, legal associations, teaching unions, and healthcare councils. Different industries and sectors have their own approved professional bodies, and members of these bodies may be eligible for tax relief.
The membership must be relevant to your current job. If you’re a nurse, you can’t claim for an architecture membership! Trade union fees often qualify for tax relief too.
If you’re not sure whether your membership is approved, check HMRC’s website for their full list. They regularly update this resource to include newly approved organisations.
How much tax can I save on my memberships?
The savings depend on your tax rate. For every £100 you spend:
- Basic rate taxpayers (20%) save £20
- Higher rate taxpayers (40%) save £40
- Additional rate taxpayers (45%) save £45
There’s no upper limit on how much you can claim, so if you pay for multiple professional memberships, it all adds up. You can backdate claims for up to four previous tax years too. That could mean a nice lump sum if you’ve never claimed before! The annual payment of membership fees and subscriptions also contributes to the revenue of professional bodies and associations.
How do I claim if I'm employed?
If you’re employed (PAYE), you have a few options:
- Apply online through your Government Gateway account
- Fill in and post a P87 form
- Include it in your Self Assessment (if you do one)
The easiest way is usually online. You’ll need to have your receipts handy. You may also need a recent payslip when submitting your claim online to HMRC, as it helps verify your eligibility and can expedite the process. After you claim, HMRC might adjust your tax code so you’ll automatically get the relief in future.
Keep all your receipts for at least 6 years, just in case HMRC asks to see them. This simple precaution can save you headaches if your claim is ever questioned.
What if I'm self-employed?
If you're self-employed, claiming is even easier. You simply include these costs as business expenses on your Self Assessment tax return. Look for the "professional fees and subscriptions" section when filling in your return.
Make sure you only claim for the business portion if your membership has any personal use too. Always claim in the correct tax year, when you actually paid the fee, not when the membership period runs.
Record keeping and receipts: what you need to know
When it comes to claiming tax relief on your professional membership fees, good record keeping is your best friend. To make sure you get every penny you’re owed, you’ll need to keep clear and accurate records of all professional fees and subscriptions paid to approved professional bodies and organisations.
Start by saving receipts for every annual subscription, membership fee, or professional fee you pay, whether it’s for a British Association, British Society, or any other HMRC approved professional organisation. Make sure your receipts show the date, amount paid, and the name of the professional body or institute.
It’s also a good idea to keep a simple log or spreadsheet listing each payment, the relevant tax year, and the organisation. Don’t forget to note your national insurance number, as you’ll need it when you claim tax relief, whether you’re using a tax return, claiming online, or updating your PAYE tax code.
Remember, you can claim tax relief for the current tax year and for up to four years back, so hang on to your receipts and records for at least that long.
Common questions people ask
Can I claim if my employer pays part of my membership?
Yes, but only for the part you paid yourself. Keep clear records showing your personal contribution to avoid any confusion.
What if my membership covers more than one tax year?
Claim relief in the tax year you made the payment. The timing of payment rather than the period covered determines when you can claim.
How do I know if my professional body is approved?
Check HMRC's list of approved professional organisations and learned societies. This comprehensive list is available on the official government website.
Can I claim for professional exams too?
Sometimes, if they're necessary for your job and not leading to a new qualification. The rules here can be complex, so check with HMRC if unsure.
Is there a deadline for claims?
Yes, you have four years from the end of the tax year to make a claim. Don't delay too long or you might miss out on legitimate tax relief.
Pie Tax
Claiming tax relief on professional memberships is completely legitimate and encouraged by HMRC. Many people forget to claim or don’t know they can, potentially missing out on hundreds of pounds over their career.
The process is usually straightforward, and the savings are definitely worth the small effort involved. Setting a calendar reminder when you renew your memberships can help you remember to claim each year.
Pie tax app designed specifically to help working individuals manage their tax burdens. Unlike other solutions, Pie offers integrated bookkeeping, real-time tax calculations, simplified tax returns, and expert advice when you need it. Pie also provides ongoing support to help you navigate tax relief claims and professional membership expenses.
Why not check if you’re eligible for professional membership tax relief today? Your wallet will thank you!
