Following a number of similar enquiries, Rawlinsons would like to share this handy article from www.accaglobal.com to remind you of which fees and subs are allowable and which travel costs are deductible when processing tax returns:
Fees and subs
A fee or sub is allowable if it is in the list below and is a statutory fee or contribution where employees pay this out of their earnings from an employment and are required to pay this as a statutory condition of their employment, or is an annual subscription to a body where employees pay this out of their earnings from an employment and the activities of the body are directly relevant to an employment where the performance of the duties of that employment is either:
- Directly affected by the knowledge concerned
- Involves the exercise of the profession concerned
The list of deductions for fees and subscriptions is at tinyurl.com/hmrc-subs
In the hustle and bustle of tax return season it’s useful to remember cases that could cause problems such as the Samadian case, which outlines the key considerations when considering what relief is available for travel. The Tribunal provided guidance which takes the form of four main points:
- Travel expenses for journeys between places of business for purely business purposes are treated as deductible.
- Travel expenses for journeys between a location which is not a place of business and a location which is a place of business are not deductible.
- Travel expenses for journeys between home (even where the home is used as a place of business) and places of business are treated as non-deductible (other than in very exceptional circumstances).
- Travel expenses are treated as deductible in relation to itinerant work.
Judgement will need to be made on a journey-by-journey basis so it is vital to keep robust records of all business journeys undertaken.