HMRC have recently written to Chartered Accountants Ireland in relation to the above. We understand that HMRC are issuing a letter enclosing a response form asking a sample of taxpayers if the information held by HMRC about their professional subscriptions or job related expenses, is still correct.

At this stage it is not clear what approach HMRC intends to take once responses are received to the letters and whether it is intended that HMRC will pursue a tougher approach in this area and challenge deductions for these expenses which can be difficult to substantiate in the context of the “wholly, exclusively and necessarily” test.

In Ireland, prior to Finance Act 2011, the payment or reimbursement of an annual membership fee of a professional body, on behalf of an employee, by an employer did not give rise to a taxable benefit-in-kind if membership of that professional body was relevant to the business of the employer. Finance Act 2011 removed the exemption for 2011 and future years, therefore, such a payment by employers is deemed to be a taxable benefit-in-kind.