Question re: Self-assessment reclaim?

KoopaCooper

So I decided that, since I have membership with the IAB and AAT, I'd look at registering for self-assessment to claim tax relief on my fees.

Seems studying for a new course does not qualify for tax relief. Oh well. But professional membership does count.

My question, though, is:

1) A new course doesn't qualify for tax relief...but does CPD count? (it's surely revenue expenditure, while I'm imagining a new course is treated as capital expenditure?)

2) Professional memberships count (so my MIAB is allowable), and Student memberships don't count (so my AAT student membership isn't allowable)...but what about Affiliate memberships? Are they professional and allowable, or not and not? (I ask because if I've passed my ISYS project, my renewal in January will be at Affiliate grade)

KoopaCooper

Oh, that would be employment income from working as an employee in practice, then.

KoopaCooper

1) Okay, I wasn't sure about whether CPD counted or not, that settles that then. Thanks.

2) Student memberships are allowable? I asked HMRC via their chat system not long ago, and was told that student membership does not count as professional membership... (although admittedly, that could just be that that particular HMRC employee gave me the wrong answer...wouldn't be the first time).

3) Thanks, I realised registration might not be necessary after I'd already registered myself. xD

MarieNoelle

I don't think the student membership is allowable
Can't seem to find anything to back this up but I would be surprised if it was.

MarieNoelle

I think it's a cost of getting a new qualification therefore capital.

MarieNoelle

They are but they don't give you access to the full membership.
If you are level 3 and pay for a bookkeeping licence with the AAT then yes the licence is deductible.
If you decide to stop at Level 2 will you pay a student membership every year? Probably not.
I don't have a definite answer on this and it may be worth the OP giving the AAT a call for clarification.

MarieNoelle

Well, it looks like PNL agrees with you @Mickdundee
I stand corrected (however unconvinced on the principle!)

MarieNoelle

I didn't say I agreed with either of you but happy to go with the majority ;-)

MarieNoelle

The question was asked today - probably same OP?
https://www.accountingweb.co.uk/any-answers/deduction-from-earnings-student-membership

KoopaCooper

Nope, that OP was not me - I don't have an account on AccountingWeb. xD

In the end, I submitted a P87 form with the subscriptions for both bodies - if they accept them, that's fine, if not then that's also fine.

MarieNoelle

KoopaCooper said:

Nope, that OP was not me - I don't have an account on AccountingWeb. xD

Apologies for assuming wrongly ;-)