List 3 Updated 03 January 2023

List 3 was updated on 03 January 2023 with additions and name changes, some effective 06 April 2021 (tax year 2021/22).

Part 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) allows for certain deductions to be made from taxable pay – i.e., to reach a figure called net taxable pay which is the pay on which Income Tax is calculated.? This part includes things such as expenses for business travel.?

Sections 343 and 344 of ITEPA allow for professional membership fees and annual subscriptions to be provided free of tax and National Insurance where:?

• It is paid to a body that has HMRC approval, and
• The activities of the body are of direct benefit to or concern the profession practiced in the performance of the duties of the employment

The full list of professional bodies that have the necessary HMRC approval is published in a document known as ‘List 3’. ?List 3 is essential reading for the reward professional, as the day-to-day professional impacts of a body appearing on it are that:?

• Employers can reimburse fees and subscriptions without fear there will be a P11D implication and / or
• Individuals can claim tax relief on the fee or subscription that they have paid (if the employer has not actually reimbursed the fee or subscription)

The way in which tax relief is claimed depends on whether the amount is up to or over ￡2,500 over the course of the tax year.

From the start of tax year 2021/22, the following was added:

• ‘The Chartered Institute for the Management of Sport and Physical Activities’

From the start of tax year 2022/23, the following were added:?

• ‘The Coaching Federation International — UK Chapter’
• ‘The Design Society’

• ‘The Association for Information Services’ becomes ‘The Association for Information Systems’ (i.e. Services becomes Systems)
• ‘The Institute of Residential Property Management’ becomes ‘The Property Institute— Professional Members (IRPM Class)’