You don’t have to report anything to HM Revenue and Customs ( HMRC ) or pay tax and National Insurance if all of the following apply: you pay the organisation yourself directly or if your employee pays the fee or subscription and you pay them back the organisation is on ‘ list 3 ’, HMRC ’s list of approved professional bodies you have exemptions (these have replaced dispensations) covering your fees and subscriptions Salary sacrifice arrangements You do have to report the value of subscriptions and professional fees if you provide them as part of a salary sacrifice arrangement.

What to report and pay

If any of the subscriptions or fees you cover aren’t exempt , you may have to report the costs to HM Revenue and Customs ( HMRC ) and deduct and pay tax and National Insurance on them. If the organisation is included in ‘list 3’ You won’t need to pay or report anything if you cover subscriptions or fees for an organisation included in list 3 either: by paying the organisation directly if your employee pays and you pay them back If the organisation isn’t included in ‘list 3’ If you pay them directly, add the cost of the fee or subscription to your employee’s earnings when deducting Class 1 National Insurance (but not PAYE tax) through your payroll. If your employee pays and you pay them back: add the cost of the fee or subscription to your employee’s earnings deduct and pay PAYE tax and Class 1 National Insurance through your payroll Salary sacrifice arrangements If the value of subscriptions and professional fees is less than the amount of salary given up, report the salary amount instead. These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change .

The following guides contain more detailed information: professional fees and subscriptions: introduction Class 1 National Insurance: membership of a professional body: payment of fees or subscriptions

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Expenses and benefits: subscriptions and professional fees

Overview

As an employer covering the cost of your employees’ subscriptions and professional fees, you have certain tax, National Insurance and reporting obligations.

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Expenses and benefits: subscriptions and professional fees

Overview

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