[UK] List 3 Updated 28th of October 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 paid (as long as the employer has not actually reimbursed it)

The list was updated on the 28^th of October 2019:

Added

From tax year 2019/20:

1. British Association of Sport Rehabilitators and Trainers (BASRaT)
2. Society of Later Life Advisers (SOLLA)
3. The Pyramus and Thisbe Club (PTC)
4. The Security Institute (SI)
5. Vantage 10 Panel of Mediators and Experts (V10PME)

Amended 

From tax year 2019/20:

1. Association of Art Historians is renamed the Association for Art History
2. Security Industry Authority entry is amended to say that tax relief is due on licenses that last 1 year and 3 years and relief is due in full for the year the 3 year licence fee is paid

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 paid (as long as the employer has not actually reimbursed it)

The list was updated on the 28^th of October 2019:

Added

From tax year 2019/20:

1. British Association of Sport Rehabilitators and Trainers (BASRaT)
2. Society of Later Life Advisers (SOLLA)
3. The Pyramus and Thisbe Club (PTC)
4. The Security Institute (SI)
5. Vantage 10 Panel of Mediators and Experts (V10PME)

Amended 

From tax year 2019/20:

1. Association of Art Historians is renamed the Association for Art History
2. Security Industry Authority entry is amended to say that tax relief is due on licenses that last 1 year and 3 years and relief is due in full for the year the 3 year licence fee is paid