How to claim professional membership fees through your company

How are subscriptions to professional and trade organisations treated for tax purposes? And what determines whether or not your membership of a particular organisation is tax-deductible?

Expenses basics

As with all types of business expenses, you can only claim for costs incurred wholly and exclusively while carrying out your business or trade.

If you claim for anything which is for your personal use, or joint use (i.e. it has a ‘duality of purpose’), you will have to pay extra personal tax on the value of the expense claim. Your company will incur Class 1A Employers’ National Insurance on the benefit.

Two different scenarios

The tax treatment of professional subscriptions depends on your situation. It’s important to understand the distinction between claiming expenses through a limited company and claiming personal tax relief as an employee, as different rules apply.

If you operate through a limited company

Your company can pay for membership of professional bodies or trade organisations as a business expense, provided the membership is wholly and exclusively for business purposes.

This means the membership must provide a benefit to the business (and you would not otherwise have joined as an individual). If this test is met, your company can deduct the cost against its profits for Corporation Tax purposes.

The HMRC ‘List 3’ of approved organisations does not determine whether the company can claim Corporation Tax relief. Your company follows the same rules as any other business expense: if it’s incurred wholly and exclusively for the purposes of the trade, it’s deductible.

For example, if you’re an IT contractor and your company pays for membership of the British Computing Society (BCS), this would typically be an allowable expense because it relates directly to your business activities. The same would apply for accountants joining accounting bodies, engineers joining engineering institutions, and so on.

The key test is whether the membership provides a genuine business benefit, such as:

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• Access to professional development and training relevant to your contracts
• Networking opportunities that could lead to future business
• Professional indemnity insurance or legal support related to your work
• Industry updates and technical resources you need for your business
• Professional accreditation that helps you win contracts

If you would have joined the organisation anyway for personal interest or social reasons unconnected to your business, then it fails the wholly and exclusively test and should not be claimed as a company expense.

If you are employed (or claiming personal tax relief)

Employees can claim personal tax relief on professional subscriptions, but only if the organisation appears on HMRC’s approved ‘List 3’ of professional organisations and learned societies.

This is a much stricter test than the one that applies to limited companies. Even if your membership is directly related to your employment, you cannot claim personal tax relief unless the organisation has been specifically approved by HMRC and appears on List 3.

According to HMRC EIM32900, the costs of membership are tax-deductible:

if the activities of the body are of direct benefit to, or concern the profession practised in, the performance of the duties of the employment.

You can browse the list here.

The list includes many well-known professional bodies such as the Institute of Chartered Accountants, the Law Society, various medical royal colleges, engineering institutions, and many others.

However, not all professional organisations choose to apply for List 3 status, and some that do apply are rejected by HMRC.

If your professional body is not on List 3, you cannot claim personal tax relief on your subscription fees, even if membership is essential for your job. However, your employer may still be able to pay the subscription without creating a tax charge if the statutory conditions are met.

Professional memberships for contractors

If you are a contractor operating through a limited company, chances are that you belong to some kind of trade organisation, society, or group related to your area of business or expertise. This includes the British Computing Society (BCS), as an example.

Your limited company can pay the cost of membership, with no tax implications, provided the membership is for business purposes under the wholly and exclusively test explained above.

Whether or not the organisation is on List 3 does not affect your company’s ability to claim the expense for Corporation Tax purposes. This is an important distinction that is often misunderstood. Many contractors mistakenly believe they need to check List 3 before their company can pay for a subscription, but this is not the case.

Practical examples for contractors

Here are some common scenarios:

Trade associations and industry bodies – If you join a trade association relevant to your sector (such as contractors’ groups, industry-specific organisations, or business networks), your company can pay the subscription as long as the membership provides business benefits like networking, industry updates, or business support.

Technical and professional bodies – Membership of bodies like the BCS, Institution of Engineering and Technology (IET), or similar organisations would typically be allowable if relevant to your contracting work. These often provide CPD, technical resources, and professional recognition that support your business.

Local business groups – Membership of chambers of commerce, business improvement districts, or local business networks can be claimed if they provide genuine business networking and development opportunities.

What doesn’t qualify – Personal interest groups, social clubs, or organisations you would join regardless of your business activities should not be claimed. Similarly, if the main benefit is personal (such as gym membership, even if you claim it helps you work better), this fails the wholly and exclusively test.

Record keeping

When your company pays for professional subscriptions, make sure you keep proper records showing:

• What the organisation is and what it does
• Why the membership is relevant to your business
• What business benefits you receive from membership

This documentation will be useful if HMRC ever queries the expense during an enquiry or investigation.

Further things worth noting

• Life memberships – Life memberships are generally not eligible for employee tax relief under the employment rules. For limited companies, the position depends on whether the cost meets the wholly and exclusively test, but HMRC may scrutinise large one-off payments carefully.
• No double relief – If your employer has paid for your trade association membership (or your limited company has paid for it), you cannot subsequently claim personal tax relief on the same subscription. You can only get tax relief once, through whichever route applies to your situation.
• Multiple memberships – There is no limit on the number of professional subscriptions your company can pay for, as long as each one individually meets the wholly and exclusively test. However, HMRC may question whether you really need membership of several similar organisations, so make sure each provides distinct business benefits.
• Subscriptions vs expenses – Annual membership fees are treated as subscriptions. However, if you attend conferences, training courses, or events run by the organisation, these are separate expenses that should be claimed as training or travel costs rather than as part of the subscription.

How does an organisation apply to join List 3?

Organisations should submit Form P356 to HMRC to seek approval to be added to the List.

To be eligible, the main purpose of the organisation should be to:

• share or advance professional knowledge
• maintain or improve professional conduct and competence
• protect members from claims made against them while doing their job

Additionally, the organisation should not be profit-making or limited to a local area.

Further details

For more technical details on the tax treatment of professional subscriptions, refer to HMRC EIM32915.

If you have any questions about expenses in general, make sure you discuss them with your accountant or umbrella company provider.