POA Circulars

90 | 24.05.2013

Finance Tax Relief on POA Subscriptions

 

Following enquiries received by members this circular is to advise the membership on the official position of the HMRC in relation to this matter.

 

For members to receive tax relief on their POA subscriptions HMRC, would need to approve the POA being placed on the approved list of Deduction For Fees and Subscriptions Paid to Professional Bodies or Learned Societies: Section 344 ITEPA 2003.

This issue is something I along with our accountants have been working on for the last 18 months. HMRC have refused to place the POA on the approved list of Deduction For fees and Subscriptions Paid to Professional Bodies or Learned Societies: Section 344 ITEPA 2003 which can be found at the following web address http://www.hmrc.gov.uk/list3/index.htm

HMRC are of the view that the POA does not qualify to be placed on the approved list. We have appealed this decision to no avail and it is only HMRC who can approve an organisation being placed on the list.

Following communications from members it is clear some members are managing to obtain tax relief on their subscriptions. I cannot say why in some cases HMRC are allowing this to happen but both our accountants and I believe that this is an error on the part of HMRC.

I am concerned that at some stage these individuals maybe required to pay back these monies to HMRC. If this is the case the Union will be unable to support any legal challenge or engage in any negotiations with HMRC on their behalf.

Should members still wish to apply for this tax relief this is a matter solely for the individual.

 

Yours sincerely

  

PETE CHAPPLE
Finance Officer