Tax relief
Tax relief on subscriptions for qualifying health staff
Tax relief on UNISON subscriptions for qualifying health professionals comes after a twelve year campaign. UNISON undertook detailed preparations and put forward a claim and has earned recognition from Her MajestyÕs Revenue and Customs for tax relief for members working in the following UNISON healthcare sectors:
- Nursing sector
- Ambulance sector
- Voluntary sector
- Professional and Technical 'A' sector
- Professional and Technical 'B' sector
- Senior and General Manager sector
If you are a member, or have been a member, of any of these sectors at any time since 6 April 2004, you can claim tax relief on 70% of your annual UNISON subscription. Currently, members of the Administrative and Clerical and the Ancillary and Maintenance sectors do not qualify for this tax relief. UNISON believes that Her Majesty's Revenue and Customs has taken a narrow view on defining what roles are 'professional' and UNISON is continuing to make representations on behalf of members in these sectors.
How to claim
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Tax relief on subcriptions for qualifying health professionals
18 April 2007
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If you are a member of UNISON and work in healthcare, you may be entitled to claim tax relief on your UNISON subscriptions.
 Claim form [PDF]
 Claim form [DOC]
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| Claim form FAQs | |
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The claim form FAQs are available in two file formats.
Claim form - FAQs [PDF]
Claim form - FAQs [DOC]
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**Important**
We recommend that you look at questions three and four to see if you can claim, then you are advised to read question five before you fill in the claim form.
Frequently asked questions
Q1. What is the background to this issue?
As long as 12 years ago UNISON started a campaign to secure tax relief on UNISON subscriptions paid by Nurses in order to restore a level playing field for UNISON members working alongside members of the RCN and RCM who already enjoyed tax relief on subscriptions paid to those organisations.
The relevant law dates back to the 1950's and requires:
the approval of a "professional body" by what was the Inland Revenue and is now HM Revenue & Customs
and
the activities of that body have to be mainly spreading information and knowledge and maintaining or improving standards of conduct and competence among members of a profession. In everyday language helping members of a profession to do their jobs better.
In order to qualify for tax relief the fee or subscription must be:
paid by the employee
and
relevant to the employment concerned.
Following extensive negotiations HMRC have determined that the activities of:
UNISON Health Care Service Group Nursing sector
UNISON Health Care Service Group Ambulance sector
UNISON Health Care Service Group Voluntary sector
UNISON Health Care Service Group Professional and Technical 'A' sector
UNISON Health Care Service Group Professional and Technical 'B'" sector
UNISON Health Care Service Group Senior and General Managers sector
are in the main directed towards the development and promotion of education, knowledge and professional standards and have approved those bodies with effect from 6 April 2004
and
that UNISON members within those sectors may claim 70% of their UNISON subscription against their taxable employment income.
Answers to FAQ's on this, hopefully in less technical jargon, can be found here or if you have a question that is not covered please can you raise this with your branch in the first instance.
Q3. What does the HMRC Decision mean?
To establish what the decision means the first question you need to ask is:
Have I, at any time since 6 April 2004, been a UNISON member of any of the following:-
UNISON Health Care Service Group Nursing sector
UNISON Health Care Service Group Ambulance sector
UNISON Health Care Service Group Voluntary sector
UNISON Health Care Service Group Professional and Technical 'A' sector
UNISON Health Care Service Group Professional and Technical 'B' sector
UNISON Health Care Service Group Senior and General Managers sector?'
We'll call them "approved sectors" and if the answer is 'yes' so far so good!
If the answer is 'no' you are not eligible to claim relief and obviously should not do so.
If your membership of UNISON is by virtue of your membership of BAOT you already enjoy tax relief on 50% of your BAOT subscription and you should not claim any additional relief at this stage. Further guidance will be issued by BAOT in due course.
To get relief you will have to submit a claim (see Q5 for details on how to make a claim).
If your tax affairs are in order you could receive a cheque in respect of a tax refund and an adjustment to your PAYE Code Number for 2007/08 (see Q7 for details).
Q4. Am I eligible to claim?
Q4a. You have been a member of one of the approved sectors continuously from 6 April 2004.
Yes, you will be able to claim relief on UNISON subs paid by you since 6 April 2004.
Q4b. You have been a member of one of the approved sectors some of the time between 6 April 2004 and today.
Yes, but you must only claim relief on UNISON subs paid by you whilst you were a member of one of the approved sectors. For example, if you moved into an approved sector on 1 October 2004, your 2004/05 claim would be in respect of six months subscriptions. Similarly if you moved out of an approved sector on 1 January 2007 your 2006/07 claim would be in respect of nine months subscriptions.
You are responsible for the accuracy of claims that you make so in future, if you move into or out of an approved sector you should advise your tax office and only claim relief for subscriptions paid during the period in which you were in an approved sector.
Q5. How do I make a claim?
Q5a. I do not submit a self-assessment form
If you have been a member of any of the approved sectors at any time since 6 April 2004 you are entitled to claim relief in respect of UNISON subscriptions that were paid by you whilst you were a member of an approved sector. Working with HMRC we have produced a claim form which you should complete and send to your tax office. If you are currently a member of any of the approved sectors you may also use this form to request that your PAYE Code Number for 2007/08 includes relief in respect of 70% of your subscription.
Q5b. I do submit a self-assessment form
Q5b.(i) I have not sent it to my tax office
Here again if you have been a member of any of the approved sectors at any time since 6th April 2004 you are entitled to claim relief in respect of UNISON subscriptions that were paid by you whilst you were a member of an approved sector. If you complete a Self Assessment Tax Return and have not yet filed your return you can make a claim on the return itself. Turn to the Employment Page and enter the amount eligible for tax relief in Box 1.34 - 'Professional Fees and Subscriptions'.
We suggest that you add the following explanations in Box 1.40 - 'Additional Information'
The amount shown in Box 1.34 is 70% of my annual subscription to UNISON, recently determined as an approved body by HMRC. While this approval may not yet be acknowledged by the appropriate entry on List 3, confirmation of it may be obtained from your PAYE, SA & NIC Group reference SAP/126/PRW/s.344. My annual subscription for the 2006/07 year was £XX.
If your membership of one of the approved sectors spans a period between 6th April 2004 and 5th April 2006 you should complete the Claim Form referred to above, attach it to your return and add the following paragraph in Box 1.40,
I wish to claim relief for earlier years in accordance with the details shown on the enclosed claim form.
If your membership of one of the approved sectors extends beyond 6th April 2007 the appropriate section of the claim form should be completed to claim relief in your code number for 2007/2008.
When you receive your 2006/07 tax calculation from HMRC, check it carefully to ensure that the amount claimed has been deducted from your taxable income. If it has not contact HMRC (the telephone number should be shown on the first page) and ask for the necessary correction to be made. You should also check to ensure your PAYE Code Number for 2007/08 is amended to reflect the inclusion of the amount claimed and that a repayment or adjustment is made in respect of earlier years if appropriate.
If you have already submitted your return for 2006/07 you can claim tax relief on your UNISON subscriptions by completing the relevant section of the Claim Form and sending it to your tax office.
Q6. How do I obtain a claim form?
You can obtain a copy of the claim form by downloading it on this page in the righthand box or by telephoning UNISON on 0845 355 0845 or from your branch representatives.
HMRC will receive a large number of claims during the next few weeks so there are likely to be lengthy delays before claims are settled. Please avoid 'phoning your tax office if possible because responding to telephone calls will further delay settlement of claims.
Q7. What does it mean financially?
Your personal tax position depends on a number of factors so this response can only be in general terms.
For most members HMRC will send you a cheque for all or some of the tax years 2004/05, 2005/06, and 2006/07. For the tax year 2007/08 an allowance will be included in calculating your PAYE code number.
Tax relief applies to 70% of your annual UNISON subscription. This means that if you pay annual subscriptions of £138 you will be entitled to tax relief on (£138 x 70%) £97.
If you pay tax at the basic rate of 22% this will give you an annual saving of £21.34
So, subject to other aspects of your tax affairs being in order, if you have been a member of one of the approved sectors since 6th April 2004, paying UNISON subscriptions of £138 per annum and liable to tax at the basic rate you can expect the following adjustments:
2004/05 Adjustment/Repayment due £97 @ 22% = £21.34
2005/06 Adjustment/Repayment due £97 @ 22% = £21.34
2006/07 Adjustment/Repayment due £97 @ 22% = £21.34
These figures are for illustration only and the situation for individual members will obviously depend on the period during which they were members of an approved sector, the amount of subscriptions paid and the rate at which they are liable to income tax.
Based on the above illustration an allowance of £97 should be included in calculating the member's PAYE Code Number for 2007/08.
Another way of looking at it is the fact that assuming you are liable to income tax at the basic rate of 22% then the tax relief reduces the true cost of your UNISON membership as can be seen below:
| Monthly UNISON Sub | Tax relief on 70% of UNISON Sub @ 22% | Net Cost of UNISON membership |
| £9.70 | £1.49 | £8.21 |
| £11.50 | £1.77 | £9.73 |
| £14.00 | £2.16 | £11.84 |
| £17.25 | £2.66 | £14.59 |
Q8. Why do only 70% of my UNISON subscriptions qualify for relief?
Trade union activities such as negotiating, representing members on individual cases and campaigning on terms and conditions don't qualify for tax relief. HMRC are entitled to grant partial relief where the organisations have objects and activities some of which qualify and some of which don't. We believe that 70% is reasonable in our circumstances because although some other organisations with similar activities have historically qualified with 100% tax relief, very few new approvals have been granted and those that have been granted have generally been in respect of less than 70% relief.
Q9.What if my subscriptions change during the year?
Your claim for each tax year should be in respect of the subscription paid in that year so if the monthly amount has changed during the year it is important that you calculate the annual amount accurately when completing the claim form and/or your tax return.
As far as future years are concerned, HMRC will include an amount in respect of the estimated relief due in calculating your PAYE tax code number so you should advise your tax office of any increase or decrease in your annual subscription promptly, so that any necessary adjustments can be made.
Q10. What if I cease to be a member?
If for any reason you cease to be a member of UNISON you should advise your tax office so that HMRC can amend any relief that had been included in your PAYE tax code.
Q11. What if I need further information or help?
Further information and help can be obtained from the UNISON website or by contacting your UNISON regional/branch office, a member of your branch committee or your local steward.
Q12. What if I joined UNISON after 5 April 2007?
If you joined UNISON after 5 April 2007 and you are a member of any of the following:-
UNISON Health Care Service Group Nursing sector
UNISON Health Care Service Group Ambulance sector
UNISON Health Care Service Group Voluntary sector
UNISON Health Care Service Group Professional and Technical 'A' sector
UNISON Health Care Service Group Professional and Technical 'B' sector
UNISON Health Care Service Group Senior and General Managers sector
you are eligible to claim relief on UNISON subs payable during the year ending 5 April 2008 and can do so by completing the 2007/08 sections of the claim form.
If you continue to be eligible to claim beyond 5 April 2008 you will need to advise your tax office of the UNISON subs payable during the year ending 5 April 2009 so that the correct amount can be included in your tax code number.
Q13. What if I am a MiP member?
We are currently in dialogue with the HMRC to ensure that MiP members can claim relief on their membership fees. MiP members are also members of UNISON and of UNISON's Healthcare Group. MiP members are therefore advised to complete and submit the claim form on the basis of your UNISON membership and the UNISON membership fee of £270 per year. Assuming we are able to reach a new agreement with the HMRC based on MiP membership fees, MiP members who pay a higher rate of membership fee should later be able to claim tax relief on the difference. News of any agreement will be posted on this site and the MiP site at:
Visit the MIP website
• For urgent help and advice at work to go Help at work
• Karen Jennings is the head of the UNISON Healthcare team:
UNISON Healthcare
1 Mabledon Place
London WC1H 9AJ
Email: health@unison.co.uk
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