Professional Member Fees

DublinD

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How does a PAYE employee claim back professional membership fees which are required by statute for their job. This has been paid by myself and have been told by my professional body they are tax deductible under section 114 TCA 1997.

Can’t see a suitable place on PAYE online system to enter the fees (I have asked Revenue but asking here in case they don't give a clear answer!)
 
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Has this changed recently? I can claim back fees from employer but, since last year, this payment is taxed.
 
Has this changed recently? I can claim back fees from employer but, since last year, this payment is taxed.

well that’s a slightly different question to the OP’s, as his/hers aren’t reimbursed.

In your case, unless there’s a statutory obligation, or it’s an explicit condition of your contract of employment, that you be a paid up member of X body, then you don’t meet the test for deductibility (the “necessarily” part of the statutory test). This is how it’s been for 10+ years now.
 
Hard to believe that the online system is not comprehensive enough to match a paper Form12... I'll update if they respond.

I’m not sure what response you’re now waiting for from them - I’ve shown you where it is on the paper form, would you not pop online for yourself and see if you can find the equivalent field on the online F12... as a professional it’s hardly beyond your capabilities... ;)

(Oh, and you’re welcome.)
 
There's definitely a place on the online form to enter other employment related expenses. You put a description and the amount. I was looking at it this morning.
 
It is box 55 on the paper (soft) copy of the 2019 Form 12. It is in the section - "Allowable Deductions incurred in Employment" so if you are filing it electronically it should be under something similar.
 
Hello,

Can a claim be made for previous years, notwithstanding the fact that a return was already filled for those previous years?

Many thanks
 
Hi - yes you should be able to do this. You have four years to make a claim so anything from 2016 is still open.
 
You need to be careful on this. There are a lot of people with professional qualifications but in positions that don't strictly require the membership of the professional body to do the job. Especially with accountants and the accountancy bodies.
 
Totally agree with Sunny. Take a look here and you'll see the current Revenue obsession with deductions for professional fees. I hope that they are applying the same criteria to their own staff. To say that it is petty would be an understandment. https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-05/05-02-18.pdf
They absolutely do apply the same criteria to their own staff.

There are no positions in the tax administration, (with the possible exception of the solicitors employed by the Revenue Solicitor’s Office,) where a particular professional membership is required either by contract or by statute.

Since 2003, Revenue’s staff are all general service grades, the same as the rest of the civil service (and therefore interchangeable / capable of transferring head-to-head, with staff from other departments).
 
... Since 2003, Revenue’s staff are all general service grades, the same as the rest of the civil service (and therefore interchangeable / capable of transferring head-to-head, with staff from other departments.

That's interesting.

I would have expected at least some of them would be required to have passed the exams and maintain membership of the Irish Tax Institute.
 
That's interesting.

I would have expected at least some of them would be required to have passed the exams and maintain membership of the Irish Tax Institute.

Nope, no more so than the majority of accountants / tax practitioners in the private sector (hence the taxation of the subs when reimbursed). The qualifications are desirable (and give people joining Revenue at management grades an advantage in getting hired), but they aren’t mandatory.

Plenty of in-house training is provided / available, people are encouraged and facilitated to undertake training such as professional accountancy or tax exams, and professional membership subs are reimbursed (and taxed through payroll). So while Revenue has lots of accountants and/or CTA’s in its ranks, they were hired as civil servants, not as accountants or CTA’s.
 
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They are extraordinary anal about this area.

To the point where they demand to know whether the Finance Director whose job description said “must be a chartered accountant” would be fired if he left CAI.
 
They are extraordinary anal about this area.

To the point where they demand to know whether the Finance Director whose job description said “must be a chartered accountant” would be fired if he left CAI.

Well either the person’s contract contains a requirement that they remain a paid up member in good standing etc... or it doesn’t. If that’s the hurdle for a deduction, and case law makes it clear that it is, then that’s what it is.
 
Well either the person’s contract contains a requirement that they remain a paid up member in good standing etc... or it doesn’t. If that’s the hurdle for a deduction, and case law makes it clear that it is, then that’s what it is.

You would think that, as would I.

But they’re denying the deduction which someone is always free to appeal.
 
I am an acccountant and a tax-advisor. I have worked in some industries where because of my position I had to prove to the Central Bank that I was a member of good standing.

A clause in a normal employment contract is wishy-washy - I know partners in accountancy practices without accountancy qualifications. But if an outside agency demands it, then it should be different.

I do not work in a regualted position or industry anymore.
 
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