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Claiming tax relief on professional fees

Gavin

| 0 Posts

11 Jan, 2020 13:19

Hi all, Has anyone claimed tax relief on their CIPD membership fees? I'm aware that you can claim tax relief on fees or subscriptions you pay to approved professional organisations. This only seems to apply however if you have to be a member of an organisation to do your job. My employer encourages and supports it's HR staff to be CIPD qualified (and CMI qualified) and I'm therefore qualified to associate CIPD level and have Chartered CMI. However, this is now not an absolute requirement and they have employed people without any CIPD qualifications but with experience and who have relevant skills in other areas that are beneficial to the wider team. Before I contact HMRC I'm keen to hear what other people have done? Thanks in advance, Gavin
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  • Ray

    | 0 Posts

    11 Jan, 2020 15:50

    Gavin, this question comes up regularly.

    By using the search function (magnifying glass at top right of page) it would have been very easy  to find this post, where you will find all the information you need...

    https://www.cipd.co.uk/Community/discussion-forum/our_profession/f/general/69349/cipd-membership-tax-relief

  • Gavin

    | 0 Posts

    11 Jan, 2020 17:54

    In reply to Ray:

    Hi Ray,

    Thanks for your response to my query.

    I was using the CIPD app and it would seem there's no search function on the app, although I understand this may be on its way.

    I did log into the website version of the discussion forums and found a few threads but not as many as I expected. I did see the thread you have shared but thanks anyway for helping.

    Just to clarify my question, I'm querying whether I should be claiming tax relief on my membership fees if it's not an absolute requirement of my job to be a member of the CIPD (although very much encouraged and very much supported by my employer). For example, if I cancelled my CIPD membership (which I won't be doing by the way) my qualifications won't disappear, I wouldn't lose my position with my employer and it won't stop me from being an HR professional, although it may limit my career opportunities elsewhere depending on the requirements of a prospective employer.

    I think I know the answer, which is 'no, I can't claim tax relief' because it's not an absolute requirement of my job to have ongoing membership of the CIPD. Before checking with HMRC, I was just curious to see what everyone else was doing.

    Thanks again.
  • Ray

    | 0 Posts

    11 Jan, 2020 18:16

    In reply to Gavin:

    Gavin, lots of people claim tax relief for their membership every year. IMHO there are no reasons for not claiming something that is a legitimate cost with respect to maintaining and improving professional competecies, and that HMRC have accepted for decades. The worst they can do is reject the deductibility so you have nothing to loose. The CIPD is on the list of HMRC-approved bodies

    www.gov.uk/.../approved-professional-organisations-and-learned-societies
  • Ray

    | 0 Posts

    11 Jan, 2020 18:19

    In reply to Gavin:

    Gavin, lots of people claim tax relief for their membership every year. IMHO there are no reasons for not claiming something that is a legitimate cost with respect to maintaining and improving professional competecies, and that HMRC have accepted for decades. The worst they can do is reject the deductibility so you have nothing to loose. The CIPD is on the list of HMRC-approved bodies.

    www.gov.uk/.../approved-professional-organisations-and-learned-societies

    Incidentally, I've never heard of anyone being dismissed for not maintaining their CIPD membership......
  • Kevin Elvidge

    | 0 Posts

    11 Jan, 2020 19:43

    In reply to Ray:

    Fully agree with Ray. I have done so for multiple years both as an employee and as a self employed person
  • Gavin

    | 0 Posts

    11 Jan, 2020 19:52

    I agree wholeheartedly with the points you raise. I'm just mindful that, for example, social workers have to be registered with their professional body otherwise they can't practice, as do doctors and countless other professions. There is no such requirement for HR unless it's a contractual requirement imposed by an employer. And I've never known an employer insist on continued membership of the CIPD - just that the employee has the required qualifications and experience. It would be nice for HMRC to be a bit clearer. I don't want to claim something only to have to repay it at a later stage!
  • Emma

    | 0 Posts

    11 Jan, 2020 20:14

    Hi Gavin, my employer doesn’t have CIPD membership as an essential requirement, only desirable, and I have recently claimed the tax relief and gone back 4 financial years with my claim no problems.
  • Gemma

    | 0 Posts

    11 Jan, 2020 23:24

    Hi Gavin, similar to Emma I claim my tax back on the professional fees. it is not a requirement of my employer, however it does ensure that I stay up to date in all matters related to my role and perform the role as required by my employer.
  • David Perry

    | 0 Posts

    12 Jan, 2020 16:11

    I've claimed mine regardless of whether it was compulsory.

    Likewise I claimed for all my training courses in outdoor skills and subsequent first aid, mountain & canoeing qualifications when I worked in outdoor centres.

    The CIPD qualifications and membership its a part of YOUR learning & development if you work in HR along with any training courses you may need to keep up to date. The fact that it isn't compulsory is neither here nor there.
  • Gavin

    | 0 Posts

    13 Jan, 2020 12:41

    Thanks to everyone for their input. I've checked the guidance from HMRC and it seems like they've changed it from: You can reclaim tax you pay on fees or subscriptions to some approved professional organisations - but only if you must have membership to do your job or it’s helpful for your work. To: You can claim tax relief on fees or subscriptions you pay to approved professional organisations. This only applies if you have to be a member of an organisation to do your job. So they've removed the 'or it’s helpful for your work'. Regardless, I'll submit my claim and will see what they do with it. Thanks again.
  • Amrith Jaffar Shafi

    | 0 Posts

    15 Feb, 2022 11:52

    In reply to Emma:

    Dear Emma, Please can you advise on which one i should choose for claiming Tax relief for CIPD. I am afraid either i m missing it or CIPD is not there. Looking forward for your response. Many thanks.
  • Amrith Jaffar Shafi

    | 0 Posts

    15 Feb, 2022 11:53

    In reply to Gavin:

    Dear Gavin, Please can you advise on which one i should choose for claiming Tax relief for CIPD. I am afraid either i m missing it or CIPD is not there. Looking forward for your response. Many thanks.
  • Jessica

    | 0 Posts

    15 Feb, 2022 16:17

    In reply to Amrith Jaffar Shafi:

    Hi! I am also in the same position - there doesn’t seem to be an option for CIPD on the list!
  • Jessica

    | 0 Posts

    15 Feb, 2022 16:21

    In reply to Amrith Jaffar Shafi:

    I found it! You have to type it fully - chartered Institute of personnel and development
  • Teresa

    | 0 Posts

    15 Feb, 2022 17:10

    In reply to Gavin:

    They list two situations where you claim tax relief:

    - professional membership fees, if you must pay the fees to be able to do your job

    - annual subscriptions you pay to approved professional bodies or learned societies if being a member of that body or society is relevant to your job

    We come under the second one - being a member is relevant to our job. Strangely they seem to list it as Personnel and Development, Chartered Institute of in some places.