goldring Registered Posts: 45 ? ? ?
i pay AAT annual membership fees, and my employer paid it back to me.

does it involve PAYE/NIC treatment? or can I just ignore it?

Reading from HMRC CW2 chapter 5, it sounded that if the employer pays, neither is an issue, but if the employer reimburse the employee ( i belive that's my case), then, it should be included on P11 for PAYE?

Any one here has the experience?


  • NeilH
    NeilH Registered Posts: 553

    In general, any expenses paid to reimburse an employee should be included on the P11d. Also on the P11d should be the amount the employee paid - resulting in no gain by the employee. However, it is possible to apply for a dispensation from HMRC to avoid having to put employee expenses on a P11d, providing the expenses are business related.

  • goldring
    goldring Registered Posts: 45 ? ? ?
    I wonder if HMRC policies have changed since my last post.
    As reading from HMRC website now:reimbursement goes through payroll, direct payment to AAT goes to P11D. I reported on P11D for this year's and received a new tax code to deduct the amount of the fees. Now, it's coming to next year, would i have to get it through payroll then. Or as NeilH suggested apply for a dispensation? ou reimburse your employee for their subscription or fees

    Definitions or restrictions

    Your employee pays for subscriptions or fees for a professional body and you reimburse them.
    What to report, what to pay

    If the professional body is included in HMRC's 'List 3' (follow the link at the end of this section for more information), add the value of the benefit to the employee's other earnings when deducting and paying PAYE tax (but not Class 1 NICs) through your payroll.
    If the professional body isn't included in 'List 3':
    • add the value of the benefit to the employee's other earnings
    • deduct and pay PAYE tax and Class 1 NICs using your usual payroll procedures
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