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ACA membership fees - BIK

  • 18-03-2016 9:44am
    #1
    littlemiss123
    Registered Users, Registered Users 2 Posts: 452 ✭✭


    Hi,

    Looking for advice on whether professional membership fees (ACA membership in this case) qualify as a BIK if paid by the employer?

    I don't work in tax so not very familiar with the legislation but from doing a bit of digging on the Revenue website it seems like they have been treated as a BIK since 2011. However, where the professional membership is a requirement of the employment, a tax deduction is available to the employee if they pay the fees. Continuing on, it says that where the employer pays the fees and the fees would have qualified for a tax deduction had the employee paid them then they would not be treated as a BIK.

    Is my understanding correct? Does anyone have any insight into whether this is typically applied in practice?

    Thanks!


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    Professional subscriptions
    Where the employer pays a subscription to a professional body on behalf of an employee, or reimburses the employee who has paid such a subscription, a taxable benefit or emoluments will not be treated as arising if membership of that professional body is relevant to the business of the employer.
    Membership of a professional body can be regarded as relevant to the business of the employer where it facilitates the acquisition of knowledge which is necessary for the duties of the employment, or directly related to the performance of the director's or employee's present or prospective duties in the office or employment.
    Where membership of a professional body cannot be so regarded as relevant to the business of the employer, the subscription paid by the employer directly or by reimbursement will be regarded as a taxable benefit, to be included as notional pay or emoluments for PAYE and PRSI purposes. For further information see Revenue eBrief No. 19/11.

    If you work in practice then it's is clearly related to your employer. If you work in industry it's not as clear but I'd imagine the exemption would apply.

    If you are a lecturer in a college then probably not.


  • #3
    jushkiene
    Registered Users, Registered Users 2 Posts: 1 ✭jushkiene


    Hi,

    i am working in accounts and hoping to get my boss to pay for my studies in ACCA. it is a while since i studied i few things is forgotten.
    1. is it tax free?
    2. can he claim back 20%?
    3. will it show up on my payslip in any form?
    4. is it just expense to the company or bik?


    thanks


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