Training costs

[Calithed0g]

I’m in between contracts so therefore neither deemed inside or outside IR35, but still have retained profit within my limited company for this financial year.

If I wish to do some training, is it legit to pay for this through the limited company?

[velcro]

Only if it is to expand/improve on an existing skill that your limited company uses in it's business operations. Not if it is to gain a new skill.

[NotAllThere]

For example, if you're a programmer who knows C, Clojure, C#, and you have training in Java to expand your programming skills, then that's allowed. However, if you're a C, Clojure, C# programmer, and you train to gain the additional skill of Java programming, then that's not allowed.

As ever with these things, it comes down to the definition of "a new skill". The question is: if you were to be investigated, could you convince HMRC that it was expansion of existing skill rather than aquiring a new skill?

[saptastic]

yeah this article seems to back that up about new skills

https://www.contractoruk.com/trainin...d_company.html

[northernladuk]

I’m in between contracts so therefore neither deemed inside or outside IR35, but still have retained profit within my limited company for this financial year.

If I wish to do some training, is it legit to pay for this through the limited company?

This has been covered a million times on here. To search for topics already discussed, which will be virtually anything you can think of go to google and type in 'training site:contractoruk.com/forums'

You can have multiple keywords like 'training expense site:contractoruk.com/forums'

You'll find thousands of threads on the topic.

[Maslins]

I'm guessing the OP's query is specific to the IR35 side of things. Ie if all your work is inside IR35, then the only expenditure you can claim is broadly what an employee would be able to claim. If your work is outside IR35, there's a lot more scope to claim expenditure.

If all your work had been outside IR35, and you have a gap between contracts, did some training (that's deemed maintaining an existing skill), most would agree that was fine to claim. If your most recent work was inside IR35, could you then claim the cost of some training (again assuming maintaining an existing skill)? I guess it's not clear cut, but I think if you're actively pursuing outside IR35 roles, and you're happy it meets the more normal rules as established by other posters here, I'd claim it if I were in your shoes.