Herald Series Tax Column 412

Q. I am an NHS registrar. In the past I have claimed tax relief on my exam fees through my tax return. These have always been agreed and I received the appropriate tax refunds. This year HM Revenue and Customs have denied me relief on the basis that the exams were not work related. This seems absolutely crazy – a doctor’s exams are nothing but work related. How do I get the relief I am entitled to?

A. You need to accept that the expenses will not give rise to tax relief. Exams are a funny thing. For an employee there is always the argument that exams are not essential for your work, otherwise they would be paid for by your employer. Often with tax expenditure you need to look at the motive behind the issue. If something is bought to allow you to carry out your job, this is often allowable, but if you incur expenditure to improve your position, this is treated as putting you in a position to work rather than being work related. If you need to pay a subscription to a professional body in respect of a current role, this should be fine for tax purposes. If, however, you need to pay for an exam to enable you to move on to the next stage of your career, this will be seen in a different light.

You should ensure that all professional subscriptions and insurances are properly claimed, but I am afraid the exam fees will need to be put down to experience.

Date of Publication::

Source of Publication:

15 October 2009

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