Can I claim an IT Training course as an expense?

[Ltd Co]

Hello everyone

I decided to move from permanent employment into the world of contracting back in August. Before setting up my company, I decided to take an IT course which I needed, to enhance my chances of getting specific IT roles. It costs me £499, which i paid out of my own pocket. Now that my limited company (active a week after my course ended) business account and accountants are all set up, could I claim this fee as an expense? I have the invoice and bank statements showing evidence that i paid for it (and it helped me secure the contract)

Any thoughts and advice will be greatly appreciated.

[pmeswani]

Hello everyone

I decided to move from permanent employment into the world of contracting back in August. Before setting up my company, I decided to take an IT course which I needed, to enhance my chances of getting specific IT roles. It costs me £499, which i paid out of my own pocket. Now that my limited company (active a week after my course ended) business account and accountants are all set up, could I claim this fee as an expense? I have the invoice and bank statements showing evidence that i paid for it (and it helped me secure the contract)

Any thoughts and advice will be greatly appreciated.

Despite this being covered before a few times, the answer is, based on my limited understanding, is no. If you secured a contract before you attended the training course, then the issue may be different, as you may be able to demonstrate that the knowledge gained was required in order to carry out the work, where as if you do the course with the intent of securing work, then it's not allowed, based on my limited understanding.

[malvolio]

Despite this being covered before a few times, the answer is, based on my limited understanding, is no. If you secured a contract before you attended the training course, then the issue may be different, as you may be able to demonstrate that the knowledge gained was required in order to carry out the work, where as if you do the course with the intent of securing work, then it's not allowed, based on my limited understanding.

WHS. The basic rule is that only if the training is directly related to your existing fee-earning work can it be claimed. Everything else, including extending your skill set, fails the "wholly and exclusively" test.

[Notascooby]

Despite this being covered before a few times, the answer is, based on my limited understanding, is no. If you secured a contract before you attended the training course, then the issue may be different, as you may be able to demonstrate that the knowledge gained was required in order to carry out the work, where as if you do the course with the intent of securing work, then it's not allowed, based on my limited understanding.

So there's the official stance - but then you can always think - how would anyone know I didn't secure the contract before taking the course?

So the decision is ultimately yours and whether or not it would pass a possible inpsection. Personally I'd go for it but it's not me that would need to justify it in the future.

[Ltd Co]

Thanks for the responses, but I am a little confused, as both responses seem a tad bit contradicting.

The software that I now use in my current contract was part of the companies requirements in order to be considered for the role, hence without the course, I would not have been considered for the role.

[Ltd Co]

So there's the official stance - but then you can always think - how would anyone know I didn't secure the contract before taking the course?

So the decision is ultimately yours and whether or not it would pass a possible inpsection. Personally I'd go for it but it's not me that would need to justify it in the future.

My sentiments exactly

[pmeswani]

So there's the official stance - but then you can always think - how would anyone know I didn't secure the contract before taking the course?

So the decision is ultimately yours and whether or not it would pass a possible inpsection. Personally I'd go for it but it's not me that would need to justify it in the future.

HMRC have the ability to read. All they need to do is to look for an audit trail. Whether they approach you or the agent / client and ask when the contract was secured would be a good start. If you are happy to take the risk, go for it. I hope you don't get inspected.

[NotAllThere]

WHS. The basic rule is that only if the training is directly related to your existing fee-earning work can it be claimed. Everything else, including extending your skill set, fails the "wholly and exclusively" test.

If this were true then no company could ever deduct the cost of training from its pre-tax profit, and all employees would have to declare training as a Benefit In Kind.

[malvolio]

If this were true then no company could ever deduct the cost of training from its pre-tax profit, and all employees would have to declare training as a Benefit In Kind.

No, that's the point. BigCo has several lines of business as part of its fee-earning activities, you only have one

[psychocandy]

If this were true then no company could ever deduct the cost of training from its pre-tax profit, and all employees would have to declare training as a Benefit In Kind.

Agree with you here. Surely ANY relevant training course that increases your businesses marketability and potential to get further income in the future (i.e. a contract) is a definite benefit for the business.

Admitedly, there is a side benefit for you personally but then its the same if your a permie. I could go on a training course as a permie, leave two months, get a better paid job on the basis of this course.

Saying that though never seen many contracts willing to take someone on just because they've been on a course?