[UK] List 3 Updated 2nd Of December 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 2nd of December but, unfortunately, details have not been provided of the updates except:

  • There are 4 additions
  • There are 3 amendments and
  • There is 1 deletion.


Global Payroll Association Comment

We are very concerned that HMRC have moved to a position of not providing the profession with the essential details that are needed.  We have written to Scott Milne (scott.milne@hmrc.gov.uk) who is the current editor of the Employer Bulletin to express our disappointment if this is the case.