How claiming tax relief on professional subscriptions reduces both tax and student loan repayments
Professional body subscriptions—memberships to organizations like ACCA, BCS, ICE, or RCN—qualify for tax relief, reducing your taxable income and consequently lowering both your income tax and student loan repayments. A basic-rate taxpayer paying £200/year for professional membership saves £40 in tax (20%) plus £18 in student loan repayments (9%), totaling £58 annual savings. The effective cost is only £142 instead of £200.
Unlike salary sacrifice schemes, professional subscription relief doesn't change your gross salary—instead, it increases your tax-free allowances, reducing the amount of income subject to both tax and student loan deductions. HMRC maintains an approved list of qualifying professional bodies, covering everything from accounting and engineering to nursing and teaching. If your professional body is on this list and membership is relevant to your current employment, you can claim relief automatically via PAYE or through Self Assessment.
This guide explains which subscriptions qualify, how the relief mechanism works, calculates the exact savings including the often-overlooked student loan benefit, covers the claim process for both PAYE employees and self-employed professionals, and provides profession-specific examples showing typical membership costs and resulting savings. Whether you're paying £100 or £500 annually for professional memberships, understanding the tax relief and loan impact ensures you're capturing every pound of benefit available.
Professional subscriptions are annual fees paid to professional bodies, trade unions, or learned societies that maintain professional standards, provide continuing education, or regulate members in specific professions.
Tax relief available:
Yes—automatically reduces taxable income
Student loan impact:
Yes—reduces loan repayments by 6-9%
Typical subscription costs:
£100-£500/year depending on profession
Typical savings (basic rate + loan):
29% of subscription cost
Who can claim:
Any UK taxpayer with qualifying subscriptions
Backdate claims:
Up to 4 previous tax years
Accounting & Finance:
Engineering:
Healthcare:
IT & Computing:
Full list: HMRC maintains an official list of approved professional bodies at gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3
✓ Qualifies for Relief:
✗ Doesn't Qualify:
Professional subscription relief works by extending your tax-free allowances, reducing the amount of income subject to tax and—crucially for graduates—student loan repayments.
You Pay Subscription
Pay your professional body directly (usually via direct debit). For example, £250 annual subscription to ACCA. This comes from your net income initially.
Claim Relief With HMRC
Notify HMRC via online form, phone, or Self Assessment. Provide subscription amount and professional body name. HMRC verifies body is on approved list.
HMRC Adjusts Your Tax Code
HMRC adds subscription amount to your tax-free allowances. If you have £250 subscription, your allowances increase by £250. This happens via updated tax code sent to employer.
Tax and Loan Deductions Reduce
With £250 extra allowances, £250 less of your income is taxable. You pay 20% less tax (£50) AND 9% less student loan (£22.50) = £72.50 total saving per year.
Receive Savings Monthly
Adjusted tax code means slightly more net pay each month (£6/month if £72.50 annual saving). Relief continues automatically each year as long as you maintain membership and stay in same job.
Without Claiming Relief:
• Gross salary: £35,000
• Personal Allowance: £12,570
• Taxable income: £22,430
• Income tax: £4,486 (£22,430 × 20%)
• Student loan: £693 ((£35,000 - £27,295) × 9%)
• Net pay after deductions: £27,607
Pay subscription from net: -£250
Available: £27,357
With Relief Claimed:
• Gross salary: £35,000
• Personal Allowance: £12,820 (£12,570 + £250 relief)
• Taxable income: £22,180
• Income tax: £4,436 (£22,180 × 20%) — saves £50
• Student loan: £670.50 ((£35,000 - £27,295) × 9% on reduced income) — saves £22.50
• Net pay after deductions: £27,679.50
Pay subscription from net: -£250
Available: £27,429.50
Better off by: £72.50/year
Tax saving: £50 + Student loan saving: £22.50 = £72.50
Effective subscription cost: £177.50 instead of £250 (29% saving)
| Feature | Salary Sacrifice | Subscription Relief |
|---|---|---|
| Gross salary changes | Yes—reduces | No—stays same |
| Tax-free allowance changes | No | Yes—increases |
| NI savings | Yes (12%) | No |
| Tax savings | Yes (20-45%) | Yes (20-45%) |
| Student loan savings | Yes (6-9%) | Yes (6-9%) |
| Employer involvement | Required | Not required |
| Self-employed can use | No | Yes |
Key takeaway: Subscription relief saves tax + loan (29% basic rate) but not NI. Salary sacrifice saves all three (41% basic rate). However, subscriptions relief is available to everyone including self-employed.
Your tax code shows the relief you're receiving. Example progressions:
Standard tax code: 1257L
Personal Allowance: £12,570 (1257 × 10)
With £250 subscription: 1282L
Personal Allowance: £12,820 (£12,570 + £250)
Tax code increased by 25 (£250 ÷ 10)
With £500 total subscriptions: 1307L
Personal Allowance: £13,070 (£12,570 + £500)
If you have multiple professional bodies, add all subscriptions
The student loan reduction from professional subscriptions is often overlooked because most guidance only mentions tax relief. For graduates, the loan saving adds significant extra value.
For each £100 of qualifying subscriptions claimed:
| Loan Plan | Tax Saving | Loan Saving | Total Saving |
|---|---|---|---|
| No loan (basic rate) | £20 | £0 | £20 (20%) |
| Plan 1/2/4/5 (basic rate) | £20 | £9 | £29 (29%) |
| Postgrad (basic rate) | £20 | £6 | £26 (26%) |
| Undergrad + Postgrad (basic rate) | £20 | £15 | £35 (35%) |
| No loan (higher rate) | £40 | £0 | £40 (40%) |
| Plan 1/2/4/5 (higher rate) | £40 | £9 | £49 (49%) |
Note: These savings assume you're earning above the loan threshold. If subscription relief drops you below threshold, savings increase further.
Basic rate taxpayer with Plan 2 loan (29% total savings):
| Annual Subscription | Tax Saving (20%) | Loan Saving (9%) | Total Saving | Effective Cost |
|---|---|---|---|---|
| £100 | £20 | £9 | £29 | £71 |
| £150 | £30 | £13.50 | £43.50 | £106.50 |
| £200 | £40 | £18 | £58 | £142 |
| £300 | £60 | £27 | £87 | £213 |
| £400 | £80 | £36 | £116 | £284 |
| £500 | £100 | £45 | £145 | £355 |
Scenario: £300/year subscriptions over 10 years
Total subscription cost over 10 years:
£300 × 10 = £3,000 paid to professional bodies
If claiming relief (basic rate + Plan 2):
• Tax saved: £60/year × 10 = £600
• Loan saved: £27/year × 10 = £270
Total 10-year savings: £870
Effective cost: £2,130 instead of £3,000
If NOT claiming relief:
Pay full £3,000, get nothing back
Waste £870 over 10 years
Key message: Many professionals pay subscriptions for years without claiming relief. Check if you've missed claiming for past years—you can backdate up to 4 tax years for lump-sum refund.
Reality: If you have student loans and professional subscriptions, you're getting 29% relief (basic rate) not 20%. That extra 9% is significant over decades.
HMRC maintains an official list of approved professional bodies. To qualify, a subscription must meet three criteria:
1. Professional body on HMRC approved list
The organization must be on HMRC's List 3 (professional bodies) or List 1/2 (trade unions, benevolent societies). Check: gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3
2. Membership relevant to your employment
The professional body's activities must relate to your current job. Example: If you're an accountant, ACCA membership qualifies. If you're a teacher with ACCA membership from previous career, it doesn't qualify unless you use accounting in teaching role.
3. Annual subscription fees only
Only recurring annual membership fees qualify. One-off joining fees, exam fees, CPD course fees don't qualify (though they may qualify for other reliefs).
Professional Associations (List 3):
Trade Unions (List 1):
Learned Societies (List 3):
❌ LinkedIn Premium:
Not a professional body—it's a social network. No relief available regardless of how you use it.
❌ Networking groups:
BNI, local business associations, Chamber of Commerce—generally not on HMRC list unless specifically approved.
❌ Course fees:
Training courses, CPD seminars, certifications have separate relief rules (not professional subscription relief).
❌ Alumni associations:
University alumni memberships don't qualify—they're not maintaining professional standards.
❌ Voluntary charities:
Charitable donations have different tax relief rules (Gift Aid), not professional subscription relief.
Pro tip: If you're in multiple professional bodies (e.g., engineer in IMechE AND IET), claim relief for ALL qualifying subscriptions. They stack—HMRC adds them together.
The claim process depends on whether you're employed (PAYE) or self-employed (Self Assessment). Both are straightforward:
Online Claim (Easiest):
Visit: gov.uk/tax-relief-for-employees/professional-fees-and-subscriptions
Click "Claim tax relief on a professional subscription"
Sign in with Government Gateway account (or create one)
Enter Details:
Professional body name (select from dropdown)
Annual subscription amount
Start date (when you joined body)
HMRC Processes:
Usually takes 2-4 weeks
HMRC updates your tax code
New code sent to employer
Check Payslip:
Next month's payslip shows updated tax code
Slightly higher net pay going forward
Relief continues automatically each year
When completing your Self Assessment tax return:
Note: Self-employed claiming through business expenses (SA103) use different process—subscriptions go under "Other business expenses" if wholly for business.
If you've been paying subscriptions but never claimed relief, you can backdate up to 4 years:
Example: Never claimed for 4 years of £250/year subscriptions
• Total unclaimed: £250 × 4 = £1,000
• Tax relief (20%): £200
• Loan relief (9%): £90
Lump sum refund: £290
How to claim: Call HMRC (0300 200 3300) or use online service to claim backdated relief. They'll recalculate past years and refund via cheque or bank transfer.
If you prefer not to use online service:
Automatic renewal:
Relief continues every year automatically. You don't need to reclaim annually unless subscription amount changes.
If subscription amount changes:
Notify HMRC via online service or phone. They update your allowances to new amount.
If you leave professional body:
Tell HMRC immediately. They remove relief from your tax code. Failure to notify is tax fraud.
If you change jobs:
Relief usually continues if membership still relevant. HMRC may contact you to verify. If new job unrelated to membership (e.g., accountant becomes teacher), you must stop claiming.
Verification:
HMRC may request proof: membership certificate, direct debit statement, or letter from professional body. Keep these documents for 6 years.
Typical subscriptions and savings for different professions:
| Professional Body | Annual Fee | Tax Saving | Loan Saving (9%) | Effective Cost |
|---|---|---|---|---|
| ACCA | £258 | £51.60 | £23.22 | £183.18 |
| ICAEW | £305 | £61 | £27.45 | £216.55 |
| CIMA | £293 | £58.60 | £26.37 | £208.03 |
| AAT | £127 | £25.40 | £11.43 | £90.17 |
Note: Many accountants hold multiple designations (e.g., ACCA + CIMA). Both qualify—claim relief for all memberships you maintain.
| Professional Body | Annual Fee | Tax Saving | Loan Saving (9%) | Effective Cost |
|---|---|---|---|---|
| IMechE (CEng) | £246 | £49.20 | £22.14 | £174.66 |
| IET | £167 | £33.40 | £15.03 | £118.57 |
| ICE | £266 | £53.20 | £23.94 | £188.86 |
| Engineering Council | £66 | £13.20 | £5.94 | £46.86 |
Common combination: Chartered engineers often pay IMechE/IET (£246) + Engineering Council registration (£66) = £312 total, saving £90.48 annually with loans.
| Professional Body | Annual Fee | Tax Saving | Loan Saving (9%) | Effective Cost |
|---|---|---|---|---|
| RCN (Nursing) | £156 | £31.20 | £14.04 | £110.76 |
| GMC (Doctors) | £425 | £85 | £38.25 | £301.75 |
| BMA | £330 | £66 | £29.70 | £234.30 |
| HCPC Registration | £90 | £18 | £8.10 | £63.90 |
Doctors often pay: GMC (£425) + BMA (£330) + Royal College (£200-400) = £955-£1,155 total. With relief, effective cost £678-£819 (saving £277-£336 annually).
| Professional Body | Annual Fee | Tax Saving | Loan Saving (9%) | Effective Cost |
|---|---|---|---|---|
| BCS (British Computer Society) | £175 | £35 | £15.75 | £124.25 |
| IRM (Risk Management) | £260 | £52 | £23.40 | £184.60 |
| ISC² (Security) | $85 (~£67) | £13.40 | £6.03 | £47.57 |
Note: Many IT certifications (CompTIA, Cisco, AWS) require annual renewal fees. These qualify if the certifying body is HMRC-approved AND relevant to your job.
| Professional Body | Annual Fee | Tax Saving | Loan Saving (9%) | Effective Cost |
|---|---|---|---|---|
| Law Society (Solicitors) | £310 | £62 | £27.90 | £220.10 |
| Bar Council (Barristers) | £335 | £67 | £30.15 | £237.85 |
| SRA Practicing Certificate | £279 | £55.80 | £25.11 | £198.09 |
Solicitors typically pay: Law Society (£310) + SRA (£279) = £589 total, effective cost £418.19 after relief (saving £170.81).
Comprehensive examples showing exactly how relief works:
Profile:
Without Claiming Relief:
Gross: £32,000
Tax: £3,886
NI: £1,974
Loan (Plan 5): £630 ((£32,000-£25,000)×9%)
Net: £25,510
Pay ACCA: -£258
Available: £25,252
With Relief Claimed:
Gross: £32,000
Allowances: £12,828 (+£258)
Tax: £3,834.40 (saves £51.60)
NI: £1,974 (unchanged)
Loan: £606.78 (saves £23.22)
Net: £25,584.82
Pay ACCA: -£258
Available: £25,326.82
Annual benefit: £74.82
£258 ACCA subscription effectively costs £183.18 (29% discount)
Over 10-year career: saves £748.20 total
Profile:
Savings Calculation:
Total subscriptions: £312
Tax saving: £312 × 40% = £124.80 (higher rate on portion above £50,270)
Loan saving: £312 × 9% = £28.08
Total annual saving: £152.88
Effective subscription cost: £159.12 instead of £312
Note: At £58,000, part of salary is higher rate (40%). The £312 relief applies at higher rate for portion above £50,270, giving larger tax saving than basic rate. Total benefit: 49% (40% tax + 9% loan).
Profile:
Savings Breakdown:
Total subscriptions: £1,055
Tax saving (mixed rate):
• £50,270-£52,000 = £1,730 at higher rate (40%)
• Rest at basic rate (20%)
• Approximate tax saving: £305 (weighted average ~29%)
Loan saving (dual loans):
• Plan 2: £1,055 × 9% = £94.95
• Postgrad: £1,055 × 6% = £63.30
• Total loan saving: £158.25
Total annual saving: £463.25
Effective cost: £591.75 instead of £1,055
Savings rate: 44% (29% tax + 15% dual loans)
Over 30-year medical career: saves £13,897.50 total on professional subscriptions
Strategic tips to ensure you're getting every pound of relief available:
List ALL professional bodies you're a member of (include trade unions, learned societies)
Check each one on HMRC's approved list (gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3)
Find total annual subscription amount for each (check direct debit or membership statement)
Claim relief for all qualifying subscriptions via gov.uk online service
Consider backdating claim for previous 4 years if never claimed before
Verify updated tax code appears on next payslip
Set annual reminder to review subscriptions and update HMRC if amounts change
Join professional bodies strategically:
If you're eligible for multiple relevant bodies, the 29% relief makes membership more affordable. A £200 body costs £142 with relief—might be worth joining for CPD benefits.
Consider trade union membership:
Even small union subscriptions (£10-15/month) qualify. With 29% relief, you're paying £7-11/month for employment protection and legal advice.
Time claims strategically:
If you join a professional body mid-year, claim relief immediately rather than waiting for tax year end. You'll get relief for the months remaining in the tax year.
Document everything:
Keep membership certificates, direct debit statements, and professional body letters. HMRC may request proof, especially for large subscriptions.
Most guidance only mentions the 20% tax relief, but graduates save an additional 9% through reduced student loan repayments. On £300/year subscriptions, that's £87 annual savings (£60 tax + £27 loan). Over a 30-year career, claiming relief on professional subscriptions saves £2,610 compared to never claiming. Check if you're eligible and claim for current year plus backdate up to 4 previous years.
Professional bodies rarely mention the student loan benefit when advertising tax relief. This hidden extra value makes memberships more affordable and rewards professional development. If you're paying for any professional subscriptions, you should be claiming relief—it's straightforward and makes a real difference over time.
UK Education Policy Specialist
With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.