Tax Relief

Tax Relief

Tax relief means that the amount you spend on certain expenses is deducted from your total income. This effectively reduces your taxable income and therefore the tax you will have to pay. In some cases, such as pension contributions, it may mean that you get tax back in another way; some reliefs are given automatically whilst others need to be applied for. Tax relief can be given on pension contributions, charity donations, professional subscriptions and some expenses for the self-employed amongst other things. In most cases, tax relief can be backdated for up to 4 years.

Tax relief on professional subscriptions

Tax relief can be claimed on fees or subscriptions to certain approved professional organisations. This is normally only the case when it is necessary to have the membership for your job and also only relates to fees and subscriptions that you have paid for yourself, rather than those paid for by your employer. To receive tax relief on professional subscriptions, this normally has to be applied for.

To check if you are eligible to do so and claim you can visit the link below
https://www.gov.uk/tax-relief-for-employees/professional-fees-and-subscriptions

You can also view the link below to see HMRC’s approved professional organisations list: https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3/approved-professional-organisations-and-learned-societies

Tax relief on pension contributions

Tax relief is also given on pension contributions. Tax relief can be claimed at the highest rate of income tax that you pay. In some cases, 20% tax relief is given automatically, which would be the correct amount if you are a basic rate taxpayer. However, for higher rate taxpayers, you could be claiming this at 40% and additional rate taxpayers at 45%, in which case you can contact HMRC to ensure that this is given. Most pension providers, such as Nest and The People’s Pension, automatically claim tax relief at 20%. However, it may be worth checking to make sure you are claiming the full amount of tax relief you could be receiving, especially if you are a higher or additional rate ta payer.

For more information and how to claim for specific tax reliefs please visit:
https://www.gov.uk/income-tax-reliefs

Isabella Ackord-Paddock
Benjamin Franklin

Beware of little expenses; a small leak will sink a great ship.

Benjamin Franklin