The Chartered Institute of Payroll Professionals
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HMRC has updated the list of professional bodies and learned societies (also known as List 3) with tax-deductible fees.
For some professional organisations, members can claim tax relief on fees or subscriptions.
List 3 shows all organisations whose members qualify for a tax deduction on professional fees and subscriptions pertaining to that organisation.
The list is updated periodically, and includes all bodies approved by the commissioners for HMRC.
HMRC has confirmed that there has been one addition to the list, as follows:
Additions
The Association of British Professional Conference Organisers (ABPCO)
Professional organisations can apply for approval for tax relief using form P356.
CIPP comment
The CIPP appears on list 3, which means that any self-funding members can claim tax relief on their membership fees. The CIPP is listed under ‘P’ under the title ‘Payroll Professionals Chartered Institute of (new title from 10 November 2010 formerly Institute of Payroll Professionals)’.
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HMRC win appeal on the treatment of car allowance payments 9 August 2021
HMRC was successful in an appeal where it was confirmed that Class 1 National Insurance (NICs) were correctly applied on Car Allowance payments to employees.
Employer, Laing O’Rour ke Services paid employees under a car allowance scheme between 2004/5 and 2017/18 where employees were entitled to choose whether to receive a car allowance payment instead of a company car. The only requirement on the employee was that they had a car available to use that met specified requirements. Access to the scheme was not determined on the level of business travel but was solely on the basis of the employees’ grade within the business. The car allowance was found to be earnings. The payments were not business expenses and did not reflect a reimbursement, actual or estimated cost to the employees. The court explored whether the payments could be deemed “relevant motoring expenditure” providing Class 1 NIC relief however this argument failed becau se: 1. The same amount was paid regardless of the amount of expenses incurred by the employee 2. Ongoing travel was not monitored and did not result in removal from the scheme 3. The amount paid was determined solely by job grade 4. The same payment is made to a person who drives no business miles vs a person who drives more than 20,000 business miles 5. Higher graded employees driving no business miles are paid more than lower graded employees driving high business miles
The appeal was dismissed and HMRC was correct to decline the £2.2 million NIC refund.
The Chartered Institute of Payroll Professionals
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