Can I claim NMC Tax Relief?

If you pay for your Nursing Midwifery Council subscription fee you could qualify for an NMC tax rebate.

All registered Nurses must register with the Nursing Midwifery Council (NMC) and most pay for it themselves without reimbursement.

An agreement between HMRC and the Nursing Midwifery Council is in place that allows you to reclaim tax relief on the full NMC registration fee.

You are eligible if you meet these criteria:

• You are a registered nurse or midwife who has paid professional fees to the Nursing and Midwifery Council.
• You have paid these fees yourself (not reimbursed by your employer).
• The professional membership is either required for your job or is helpful for your work.

Nurses are also entitled to claim tax relief on other work related expenses which presents a significant financial opportunity for nurses across the UK.

Importantly, understanding these entitlements could put hundreds or even thousands of pounds back into your pocket over time.

This guide will explore numerous expenses that NMC members can qualify for and the ways to claim it back from HMRC.

Are NMC members eligible to claim for anything else?

It’s quite normal for nurses to have to spend their own money on other work expenses in addition to their NMC subscription.

Most Nurses qualify for some of the following expenses:

• Professional fees and union subscriptions – membership costs for professional bodies like the NMC and RCN and others. You can also claim for your UNISON fees.

The professional body or Union must be on HMRC’s list of approved professional organisations.

• Using your own car – this doesn’t include normal commuting to just one place. An example would be a mid-wife travelling to clients in the community. Some kind of travel log or diary is usually required to support this type of claim.
• Work assets and equipment − if you buy equipment such as a laptop or desk that you use for work, you may be eligible for tax relief. You’ll need proof of purchase, and the asset typically must have a lifespan of more than two years.

Flat rate expenses:

Flat rate allowances offer simplicity and don’t need to backed up with evidence.

• Uniform cleaning − if you pay to clean your work uniforms, and your employer doesn’t provide cleaning vouchers or laundry facilities. Most Nurses are eligible for tax relief on a uniform allowance worth £185 a tax year.
• Shoes and tights − if you buy tights and shoes for work you can claim back up to £18 each tax year.

As a nurse or healthcare worker you use our healthcare workers tax rebate guide to find out more about what HMRC classify as ‘work expenses’.

Decrease your future tax bill

It’s important to remember that once you make a claim you will pay less tax in each future tax year through an adjustment in your tax code.

After a successful claim HMRC will send you and your employer a tax code that will reflect your work expenses as a Nurse.

With most nurses working in their profession for many years, this will be a valuable tax saving not to be missed.

How far back can I claim an NMC tax rebate for?

Four tax years is as far back as you can go. With your initial claim you’ll get the tax relief you are owed for the previous four tax years and any refund due for the current year will usually be repaid through your salary.

How much is an NMC tax rebate worth?

The NMC fee currently costs £120 per tax year. You can claim a tax rebate worth either 20%, 40% or 45% of the annual fee.

The percentage of tax relief depends on if you are a higher tax payer (40% or 45%) or basic rate tax payer (20%).

What documentation do I need to support my claim?

You must retain evidence of your payments, for example:

• Receipts for all professional membership fees and subscriptions. An annual statement from the NMC showing payments for example.
• Proof of payment (bank statements, credit card statements).
• Documentation showing the amount and date of payment.
• Evidence that you personally paid the fee (not your employer).

It’s a good idea to keep these records for at least 4 years from the end of the tax year to which the claim relates.

When submitting your claim, you must send copies of receipts or other evidence showing how much you paid for each professional fee or subscription.

How to claim your NMC tax rebate

The tax office let you claim for your NMC and any other costs either online or by post. If you need any help you can call HMRC directly and they will assist you.

The method of claiming tax relief on your NMC membership fee depends on whether or not you complete a self assessment tax return in the year you make the claim.

P87 or online form:

In cases where a tax return is not needed nurses should use HMRC form P87 or the .GOV online process to submit their NMC claim.

The P87 form can be completed online or downloaded and sent by post to HMRC. It’s worth noting that one P87 form allows for claims covering up to four consecutive years, making it convenient for filing multiple years’ worth of NMC rebate claims.

Nurses can also choose to use the online claim process to submit their claim which is often the quickest way to receive your refund.

You should expect to get a response and any tax rebate due from HMRC in about 8-12 weeks.

HMRC will typically pay your refund into the bank account you have provided on your P87 or by cheque.

NMC tax rebate through self assessment:

You would need to have employment expenses worth £2,500 or more to need to complete a tax return or have a different reason like self employment.

For individuals who do file a tax return it’s necessary to include the value of your NMC membership fee (as well as any other eligible professional fees and tax reliefs) in the employment section of your SA return.

Once HMRC has processed your tax return they will calculate and refund any income tax owed to you through self assessment.

What is a Nurse tax rebate worth?

The average Nurse tax rebate depends on your circumstances. We’ve listed some of the most popular expenses below to give you an idea of what you might be entitled to.

• Nurses uniform tax relief:

For the cost of washing your own uniform a claim is typically worth £185 per tax year.

• Nurses shoes and tights tax relief:

If you provide your own shoes and tights you can claim £6 for tights and £12 for shoes per tax year.

• NMC fees:

Tax relief is applied to the full amount of your Nursing Midwifery Council (NMC) subscription fees.

• RCN fees:

Tax relief is allowable on the full annual subscription fee of your Royal College of Nursing (RCN) fees.

• UNISON fees:

An agreement with UNISON means you can claim back tax relief on 70% of your total UNISON subscription fee.

• Everything else:

Any other allowable expenses will be worked out on an individual basis and what you are owed back is dependent on the type of expense and the rate at which you pay tax.

Find out more with our income tax guides which cover HMRC tax reliefs and allowances for employees in the health industry.

NMC tax rebate P800 tax calculation

HMRC will generate a P800 tax calculation letter for each previous tax year of your claim and post it to you. They should also update your personal tax account online with the same figures.

The P800 tax calculation will show you how HMRC have included your NMC fee and any other job expenses and worked out your tax rebate.

It’s worth checking each calculation so you can tell HMRC if you think anything is wrong.

Tax codes for NMC members

After processing either the P87 form or the tax return HMRC will issue an updated tax code that reflects both the annual value of your NMC membership fee and any other eligible professional fees and reliefs.

This adjustment ensures that you receive appropriate tax relief for your employment expenses throughout future tax years by paying less income tax through your pay.

If you ever stop paying membership into the NMC or receiving allowances which are included in your tax code you should notify HMRC so they can amend your tax code.

What are the common misconceptions and deadlines I should be aware of?

Common misconceptions:

• Myth: Claiming tax relief takes money from the NHS or public services.
  Fact: This is legally entitled relief on expenses and is repaid to you by HMRC either by refunding tax you have already paid or by reducing your tax bill moving forward.
• Myth: You can only claim for the current tax year.
  Fact: Claims can be backdated for up to 4 previous tax years.
• Myth: Your employer must approve your claim.
  Fact: Claims are made directly to HMRC without employer involvement.
• Myth: All professional memberships qualify for tax relief.
  Fact: The organisation must be on HMRC’s approved list.