Self employed training allowable for tax

[TheCyclingProgrammer]

For example the NHS can train someone up for virtually any role you can think of due to their size

I'm not sure they could. If say, a receptionist decided they wanted to become a nurse, the cost of their training would not be a tax deductible cost because its not wholly, exclusively and necessarily for their current job.

[SueEllen]

I'm not sure they could. If say, a receptionist decided they wanted to become a nurse, the cost of their training would not be a tax deductible cost because its not wholly, exclusively and necessarily for their current job.

It's not to do with the job but the organisation.

So I know they train nurses and some other clinical staff to become hospital managers.

In regards to a receptionist becoming a nurse - they did use to encourage lower band permanent staff to do degrees and train for roles e.g. nursing, public health, social work but be based at that hospital during training. This is because the funding came from the Department for Health. Now people have to do pay for it themselves using student loans.

[gaff]

If you were to pay for training that is allowable for tax, is it the date you pay for it, or actually go on the training that counts for what financial year you claim it in?

It's just that I'm paying for some training next week, but doing it at a later date, which is in the next financial year, so which one would it fall in?

[SueEllen]

If you were to pay for training that is allowable for tax, is it the date you pay for it, or actually go on the training that counts?

It's just that I'm paying for some training next week, but doing it at a later date, which is in the next financial year, so which one would it fall in?

linky

[gaff]

linky

"Reclaiming VAT on training"

What has that got to do with what I was asking?

[Scruff]

If you were to pay for training that is allowable for tax, is it the date you pay for it, or actually go on the training that counts for what financial year you claim it in?

It's just that I'm paying for some training next week, but doing it at a later date, which is in the next financial year, so which one would it fall in?

The date of the Supplier's invoice (in the name of YourCo.)

[malvolio]

"Reclaiming VAT on training"

What has that got to do with what I was asking?

Quite a lot, actually. If it isn't "wholly and exclusively" for business you normally can't claim the VAT on it, but in the case of training you definitely can't. (There are pages of HMRC guidance notes on this somewhere on their website).

But to answer the original question, the training is allowable if - and only if - it is line with the principle fee-earning activity of the business. So in the OP's case I would say it is therefore claimable since the training is maintaining existing skills rather than developing new ones.

[gaff]

Hypothetically if you put courses down as an expense that in your opinion were allowable, but after HMRC investigation they decided that they weren't allowable, what would the consequence be, would you only have to pay the tax owed if you hadn't claimed or would there be a fine on top of that?

[NotAllThere]

If they believe it was a genuine mistake, it would normally be tax owed + interest from the date it was due.

[b r]

But to answer the original question, the training is allowable if - and only if - it is line with the principle fee-earning activity of the business. So in the OP's case I would say it is therefore claimable since the training is maintaining existing skills rather than developing new ones.

I'll go back to my original comment, and drop this here:

The situation as regards tax relief for training paid for by employers is very different. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

https://www.conscious.co.uk/site/lib...eductible.html

And lets remember, we're not self-employed, but employees.