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Paying Tax on CIPD subscription?

Hi All,

I wonder if someone could clarify for me? I am currently undertaking the CIPD level 7 (year 1) which my company pay for. In my previous study years I have paid for the CIPD subscription on a company card.  This year however, I have been told from the accounts dept.  its a benefit in kind and I should pay it and they will refund me through my wages so that I pay the tax on it?

I am unsure if this correct? Would appreciate it if anyone has any experience with it.

Thanks

Clair 

  • Hi Clair

    My company pays the subscription for me, but as this is seen as a "financial benefit" the amount is run through payroll in order to calculate the BIK and deducted from there.

    I am not sure if this is the case for the UK though (I am based in Ireland)

    Thanks

    Fionnuala.  

     

     

  • Linda

    | 245 Posts

    Chartered Member

    3 Jun, 2015 13:35

    If your employer has paid for your professional subscriptions on your behalf and has agreed a dispensation with HMRC then they won’t report these subscriptions on your P11D. As a result you are not taxed on the cost of your employer paying this for you so you cannot claim a deduction for the relevant amount.

    However, if your employer pays the professional subscription for you and reports it on your P11D form at the end of the tax year you can claim offset the membership fee or subscription against your income when calculating your tax bill.  You either need to contact the HMRC to do this via an additional allowance in your PAYE code, or via completing a Self Assessment Tax Return.

  • Hi


    As per Linda's reply - my employer pays for professional subscriptions which are agreed as part of our dispensation with HMRC and therefore I am not taxed.

  • Thanks for your replies they have been really useful!
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