Can you get tax relief on accountacy subscriptions?

[cork]

Can you get tax relief on accountacy subscriptions?

I was talking to an accountant recently who said because of accountacy subscriptions & CPD/CPE requirements was going to park his membership for a while.

I just said be very careful doing this as applying for re-entry could be troublesome.

There is no relief for CPD courses - but Can you get tax relief on accountacy subscriptions?

 

[T McGibney]

http://mcgibney.wordpress.com/2011/03/25/revenue-abandon-lenihans-professionals-tax-plan/

I presume that the same principles would apply to tax deductability of mandatory professional subs and CPD costs paid by an employee as to the BIK exemption of those costs paid by the employer on their behalf?

 

[mandelbrot]

It's linked on Tommy's blog, but the relevnat part of the eBrief from Revenue states:

"an income tax deduction will be allowed in respect of the annual membership fee payable by an employee to a professional body, association, society, council, etc. where all of the following conditions are satisfied:

• the duties of the employee and the duties of the employment require the exercise or practice of the occupation or profession in respect of which the annual membership fee refers; and
• the employee so exercises or practices the occupation or profession in respect of which the annual membership fee refers; and
• membership of the professional body is an indispensable condition of the tenure of the employment. "

So, for an accountant working as an accountant the first two are not going to be an issue. It's the 3rd one that could be a problem - it must be the case that it is an indispensable condition of the tenure of his employment. So, if he can park his membership, but still work away in the same job, it's arguable that he wouldn't be entitled to relief (I know that's the rock I perished on when I wanted to claim relief).

But, if he just pays the fee and claims the relief, and is subsequently challenged, then his employer can always confirm they require him to be a member...

 

[M K Brazil]

Take a look at the Revenue's ebrief on this issue and the examples make it clear that they will take a reasonable view on "indpensable condition' rule - in short, if your friend is working as an accountant, I'd be happy with both his CPD costs and annual subscription.