MBA as an Expense

[TheFaQQer]

a) Employ a project manager [too expensive]
b) Pay to train an (the only) existing employee
c) Wait to see if the director pays for the training himself [unlikely; it's expensive and he's not even in the 40% income tax bracket!]
d) Shut down for a couple of years while the director goes perm for someone else and gets them to pay for training/experience.
e) Stop trying to build the business.

What's the best from the company perspective?

b, d or e

Depends on the training that you are going for - there are certainly cheaper (and perhaps more relevant) training courses than £30k for an MBA. I recently did some training through my company to expand my skill set, move onto a different track, and potentially increase earnings.

The key question is whether the training will directly benefit the business - if you can argue that it will, then spend wisely and expense it. Setting up a company to raise £30k so that you can spend it on training does not class as a business expense. Running a company and then paying for training and increasing your sales / rate is of direct benefit to the business, so claim it.

Alternatively, go permie for a while and get some more training.

[pickle]

a.

Put a small business plan together, showing how your company proposes to use the newly minted MBA director. Put a contract in place with your employee whereby the employee agrees to return and work for the company for a minimum of 2 years at xxx salary after the mba, otherwise they agree to repay the costs of the MBA back to the company (this is what the big consultancies etc do). The business plan might even show that the 2 year point is the "break even", ie the period after which your increased post mba fee income will equal the mba costs.

Pay for the mba, stick the business plan and contract in the draw and hope that hector doesnt come knocking. If he does, you have enough paperwork to at least try and justify your stance. Worse case scenario most likely he makes you pay the BIK.


Alternatively, as you wont be working during the mba, just use your tax allowance to draw the money out of the company free of income tax anyway. I decided that route was less hassle / risk in the end.

[Old Greg]

Foundation or Advanced?

Sorry - not been around for a couple of days. Week long foundation/practitioner course.

[TheFaQQer]

Pay for the mba, stick the business plan and contract in the draw and hope that hector doesnt come knocking. If he does, you have enough paperwork to at least try and justify your stance. Worse case scenario most likely he makes you pay the BIK.

"draw" is what you do in art classes; "drawer" is where you put things.