[UK] List 3 Updated 24th of March 2020

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 that:

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

The list was updated on the 24^th of March 2020 as follows:

Added

There is one addition and from the 6^th of April 2019 the below has been added 

• Society for British and International Design

There are no changes or deletions.

Global Payroll Association Comment

This is probably the last List 3 document of the 2019/20 tax year to have additions, changes and deletions.  We suggest that perhaps it is a good time to make an online copy of this for your records as we come around to expenses and benefits time. 

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 that:

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

The list was updated on the 24^th of March 2020 as follows:

Added

There is one addition and from the 6^th of April 2019 the below has been added 

• Society for British and International Design

There are no changes or deletions.

Global Payroll Association Comment

This is probably the last List 3 document of the 2019/20 tax year to have additions, changes and deletions.  We suggest that perhaps it is a good time to make an online copy of this for your records as we come around to expenses and benefits time.