Tax treatment of professional subscriptions

Revenue guidance on the application of tax to professional subscriptions paid by employers on behalf of their employees has recently been amended.

If you pay a subscription to a professional body for your employees, that payment is taxable. However, in limited and restricted circumstances, you may pay professional subscriptions without deduction of tax.

You can pay subscriptions to a professional body for an employee without deduction of tax where:

• There is a legal requirement for membership of a professional body, or there is a requirement for a practicing certificate or licence
• The duties of the employee require them to be a member of a professional body or to hold a practicing certificate or licence, and the employee cannot exercise their duties without that membership or certificate

We would encourage all employers therefore to review their current policies to ensure full compliance with these rules. If you would like any further guidance on this matter, please contact a member of our tax team.