Professional subscriptions

Conditions

• The subscription must be to a body relevant to your trade, profession or employment — membership taken purely for personal interest is never allowable.
• For the self-employed and limited companies, the test is whether the subscription is wholly and exclusively for the business. A relevant professional or trade body usually qualifies, and it does not have to appear on HMRC's approved list.
• For employees claiming personal tax relief the rule is stricter: the body must appear on HMRC's 'List 3' of approved professional organisations and learned societies and be directly relevant to the job. If it is not on List 3, an employee cannot claim, even if membership is essential for the role.
• You cannot claim if your employer or company has already paid the subscription, and entrance fees or life membership paid by an employee do not qualify for relief.

Common mistakes

• Claiming a general-interest membership that has no real connection to the work.
• Employees claiming for a body that is not on HMRC's approved list.
• Assuming List 3 applies to the self-employed — it is an employee rule. Sole traders and companies use the wholly-and-exclusively test instead.

What to keep

• Subscription invoices or receipts.
• A note of how the membership relates to the work.

Real-world example

An accountant in practice pays an annual membership to their professional institute. Because it is directly relevant to the work, the cost is allowable against the business.

Frequently asked

Related allowances