As soon as summer ends the annual subscription demands begin to accumulate in your in-tray and boy can they pile up! For instance you could easily be facing a total annual subs bill of over £1,000 (see table).
| Medical body: |
Sub: |
| Royal College of Obstetricians & Gynaecologists: |
£300 |
| General Medical Council: |
£290 |
| Medical Defence Union: |
£280 |
| British Medical Association: |
£180 |
| Total: |
£1,050 |
You may need to belong to these organisations as a condition of your employment so are obliged to pay the amounts due or, in the case of the MDU, to give yourself protection against potential future negligence actions. But did you know that these reasons also give you full justification to claim a deduction for the subscription costs from your taxable salary?
The Inland Revenue will give tax relief for subscriptions paid to an approved professional body where the activities of that body are of direct benefit to, or concern, your profession.
In the example above a tax rebate of £420.00 would be due if you pay tax at the highest rate of 40%, or £231.00 if your tax rate is 22%, (see table below)
| Total professional subscriptions paid: |
£1050.00 |
| Tax rebate for higher rate taxpayer: (40% x £1,050) |
£420.00 |
| Tax rebate for basic rate taxpayer: (22% x £1,050) |
£231.00 |
If the PAYE tax code on your latest payslip is 503L, 503T or BR it means no tax relief is being obtained on your GMC subscription in addition to the other professional bodies you subscribe to. However, there is no need to despair as Taxation Solutions can seek tax rebates for all tax allowable professional subscriptions paid since 2000! Just think of the money involved! If you paid an average of £1,000 subs in each of the last six years, that could amount to a tax rebate in excess of £2,500!!
Taxation Solutions specialise in the tax affairs of hospital doctors and consultants and have obtained tax refunds for doctors amounting to thousands of pounds. Jason Sharp the founder of Taxation Solutions was previously the Regional Tax Manager for BMA (Professional Services).
GET IN TOUCH TODAY FOR YOUR TAX HEALTHCHECK
This information sheet is designed to be a general guide only and Taxation Solutions Limited accepts no liability for any loss occasioned in reliance on the information given therein.
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