Professional Fees Tax Relief Guide

If you are in a profession where you must pay a subscription or a professional fee, it is highly likely that you are entitled to tax relief.

You can claim a tax rebate for professional fees for many industry bodies backdated for up to four tax years; in most cases you should get a new tax code which means a reduction in future years too.

HMRC expects you to make a claim for professional fees and any other work related expenses by using their online or offline tax rebate claim process.

Taxpayers who don’t make a claim to HMRC won’t have their professional fees entitlement repaid automatically so it’s vital that you understand what you can claim for and the timescales involved.

You should qualify for tax relief on professional fees if:

• if you pay professional membership or a license for your job, or choose to enter a voluntary organisation for job-related benefits
• the organisation is approved by HMRC for subscriptions tax relief.
• you have paid tax in the year(s) of your claim.

Our professional fees tax relief guide will let you know what you are entitled to and how to claim it back directly from HMRC.

What professional fees can I claim tax relief for?

For some job roles it is essential that you have professional registration and / or a special licence that allows you to legally practice your profession.

Where not mandatory, it might be beneficial to voluntarily become a member of a professional body (you can claim tax back on union fees too).

Regardless of whether membership is mandatory or optional, you are likely to need to pay an annual fee for membership and for this you may be entitled to subscriptions tax relief.

You can use our professional fees directory to see if your professional body is eligible.

HMRC applies the following exemptions to claiming professional fees tax relief:

1. You’ve opted for a lifetime membership on your subscription.
2. When the employer is paying for your professional fees.

HMRC updates their approved list from time to time here. If you are unsure your professional body is included it is best to check before submitting your claim to HMRC.

How can I claim for my professional fees from HMRC?

To claim for your professional fees for the first time you should complete a form P87, online claim form or a self assessment tax return if you complete one.

There are three main methods to claim professional fees tax relief:

1. Form P87 – For claims under £2,500, complete and submit the P87 form by post or online through the HMRC website.
2. Online iForm – Use HMRC’s digital portal to submit your claim electronically.
3. Self-assessment tax return – If you already complete a tax return, include your professional subscription expenses in the employment expenses section.

For all methods, you’ll need details of the professional body, the amount paid, and your employment information.

You should provide evidence of what you have spent with your online claim form, or postal P87.

If you incur other expenses of employment you should include these on the same claim form so HMRC can calculate what you are owed back for everything at the same time.

What documentation do I need to keep for my claim?

Always keep evidence of your professional subscription payments for at least four years.

Essential documentation includes:

1. Receipts or invoices from the professional body showing the amount and date paid.
2. Bank statements or payment confirmations proving you made the payment.
3. Membership certificates or cards showing the period covered.
4. Any correspondence with your employer regarding partial reimbursements.
   HMRC has implemented stricter evidence requirements recently, so maintaining comprehensive records is increasingly important.

How much is professional fees tax relief worth?

What you can claim back is all dependent on the agreement between the professional body or Union and HMRC.

Each organisation or Union has separately determined the percentage of membership fees eligible for relief, with some offering relief on a partial amount and others permitting tax relief on the entire fee.

The amount of tax relief depends on your income tax rate.

Basic rate taxpayers (20%) receive relief worth 20% of their subscription cost, higher rate taxpayers (40%) receive 40%, and additional rate taxpayers (45%) receive 45%.

For example, if your annual professional subscription costs £300, you would save £60 as a basic rate taxpayer, £120 as a higher rate taxpayer, or £135 as an additional rate taxpayer.

For professionals with multiple memberships, these savings can add up significantly.

Will I receive a refund or just a tax code adjustment?

How you receive your tax relief depends on your circumstances and the claiming method:

1. For current year claims, HMRC typically adjusts your tax code, reducing the tax you pay through PAYE for the remainder of the tax year.
2. For retrospective claims, you’ll usually receive a tax refund either by cheque or direct bank transfer.
3. If claiming via self-assessment, the relief is calculated as part of your overall tax position.

Professional fees P800 tax calculation

HMRC will send you a P800 tax calculation to confirm the value of any overpaid income tax due to a claim for professional fees.

A P800 tax calculation will explain the figures involved in each tax year of your claim showing how much tax relief you have been given and the professional fees allowed.

The P800 will tell you how any refund will be repaid to you which is normally via a bank transfer online or by cheque.

Frequently asked questions about professional fees tax relief

Can I claim for previous years, and is there a deadline?

Yes, you can claim tax relief retrospectively for up to four tax years. The deadline is four years from the end of the tax year in which you paid the subscription.

For example, for subscriptions paid in the 2020/21 tax year, you have until 5 April 2025 to submit your claim.

Missing this deadline means losing your entitlement to that year’s relief, so it’s advisable to check previous years’ subscriptions and submit claims promptly if you haven’t already done so.

Which professional memberships qualify for tax relief?

Only annual subscriptions to professional bodies approved by HMRC (found on their ‘List 3’) qualify for tax relief. The membership must be relevant to your job and necessary for your work.

Common examples include memberships to healthcare councils the General Medical Council (GMC) and the Nursing Midwifery Council (NMC), and teaching organisations like the National Education Union (NEU) and the National Association of Schoomasters Women Teacher (NASUWT).

Claimed for your professional fees before?

If you have claimed for your professional fees in the past you can call HMRC to tell them about any changes.

They should be able to update your record with any changes and adjust your tax code to reflect your current professional fee tax relief.

What if my employer pays for part or all of my professional fees?

You can only claim tax relief on the portion of the fees that you personally pay. If your employer reimburses you fully for your professional subscription, you cannot claim tax relief as you haven’t incurred the expense.

Can I claim tax relief for multiple professional memberships?

Yes, you can claim tax relief for multiple professional memberships provided each one meets the eligibility criteria.

Each membership must be necessary for you to perform your job duties and paid to an approved professional body.

What if my professional body isn’t on HMRC’s approved list?

If your professional body isn’t on HMRC’s List 3 of approved organisations, you cannot claim tax relief for your subscription fees. However, professional bodies can apply to HMRC for approval, so it’s worth checking with your organisation if they’ve considered this.