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Tax Update (July 2008)

Professional Fees & Subscriptions – which are exempt from tax?

HM Revenue & Customs have published a revised list of professional bodies and learned societies whose fees and subscriptions are tax allowable. This is commonly known as List 3 and is available to download from HMRC web site.

Where fees or subscriptions to professional bodies or learned societies are refunded by employers to their employees they are potentially subject to tax. You should check the body for which refund is being made against List 3. Where they appear in the list you may disregard them for tax purposes but where they are not on the list you should subject the payment to normal PAYE rules and subject them to tax.

Mentor can help with any queries you have relating to taxable benefits- just pick up the phone to the Mentor Tax Advice Service on 0800 634 7000 if you are in any doubt. We also offer a range of useful Tax Training Courses- call 0800 634 7004 to find out more.



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