Expenses and benefits: subscriptions and professional fees
What to report and pay
If any of the subscriptions or fees you cover aren’t exempt, you may have to report the costs to HM Revenue and Customs (HMRC) and deduct and pay tax and National Insurance on them.
If the organisation is included in ‘list 3’
You won’t need to pay or report anything if you cover subscriptions or fees for an organisation included in list 3 either:
- by paying the organisation directly
- if your employee pays and you pay them back
If the organisation isn’t included in ‘list 3’
If you pay them directly, add the cost of the fee or subscription to your employee’s earnings when deducting Class 1 National Insurance (but not PAYE tax) through your payroll.
If your employee pays and you pay them back:
- add the cost of the fee or subscription to your employee’s earnings
- deduct and pay PAYE tax and Class 1 National Insurance through your payroll
Salary sacrifice arrangements
If the value of subscriptions and professional fees is less than the amount of salary given up, report the salary amount instead.
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.