List 3 Updated June 2019

The Income Tax (Earnings and Pensions) Act 2003 (ITEPA) makes provisions for certain deductions to be made from taxable pay – i.e. before tax income tax is calculated.  Part of the act allows for some professional membership fees and annual subscriptions to be provided tax and National Insurance free if:

• Paid to a body that has HMRC approval, and
• The functions of the body are a direct benefit or concern the profession practiced in the performance of the duties of the employment.

The full list of bodies that have HMRC approval is documented in a publication called “List 3” and employers and individuals need to check this every time it is updated as the implications of approval are:

• Employers can refund fees and subscriptions without a P11D implication and / or
• Individuals can claim tax relief on the fee or subscription they have paid (if the employer has not actually reimbursed the fee or subscription)

The list was updated on the 19^th of June 2019:

Added

From tax year 2019/20:

1. The Professional Yachting Association and
2. The American Philosophical Association

Changed

The British Cardiac Society was renamed as the British Cardiovascular Society.

The Income Tax (Earnings and Pensions) Act 2003 (ITEPA) makes provisions for certain deductions to be made from taxable pay – i.e. before tax income tax is calculated.  Part of the act allows for some professional membership fees and annual subscriptions to be provided tax and National Insurance free if:

• Paid to a body that has HMRC approval, and
• The functions of the body are a direct benefit or concern the profession practiced in the performance of the duties of the employment.

The full list of bodies that have HMRC approval is documented in a publication called “List 3” and employers and individuals need to check this every time it is updated as the implications of approval are:

• Employers can refund fees and subscriptions without a P11D implication and / or
• Individuals can claim tax relief on the fee or subscription they have paid (if the employer has not actually reimbursed the fee or subscription)

The list was updated on the 19^th of June 2019:

Added

From tax year 2019/20:

1. The Professional Yachting Association and
2. The American Philosophical Association

Changed

The British Cardiac Society was renamed as the British Cardiovascular Society.