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MBA as an Expense

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    MBA as an Expense

    I am planning to do an executive MBA which is going to cost around £ 30000 over two years. I am currently working as a perm IT sector employee but my employer is not willing to pay for the MBA.

    My questions are:

    - Can I charge my MBA back as tax deductable expenses to my one man limited company if I switch into contracting?

    - Would it make a difference if my contracts are inside IR35?

    - Is there a limit on the training expenses that can be charged to the company?

    Please share your experiences and I would love to hear if someone is already doing that.

    Thanks in advance

    #2
    Originally posted by umcool
    - Can I charge my MBA back as tax deductable expenses to my one man limited company if I switch into contracting?

    - Would it make a difference if my contracts are inside IR35?

    - Is there a limit on the training expenses that can be charged to the company?
    Hmm..

    1, I dobt think so...seen some references to phasing out vocational training relief. You'd really need to speak to an accountant on this one

    2. Yes you're allowed 5% expenses (although a few others dont count as part of that 5% but training isnt on the list)

    3. Not that I am aware of.

    Comment


      #3
      Put it this way - the only way you will gain by charging an (as yet non-existent) company for your MBA is by claiming tax relief on the company's income against your Corporation Tax bill.

      So, why do you think us taxpayers should fund your personal training?

      Or put it another way. Business expenses are allowable as non-BIK only if they are wholly in pursuit of business. Since your (as yet non-existent) company clearly has an income stream to charge your training against, you gaining an MBA will not add any direct benefit to it. So why should it be deductible as a business expense? In other words, charge what you like, but you still pay full PAYE and NICs on it as earned income.


      Get the idea? Bloody amateurs....
      Blog? What blog...?

      Comment


        #4
        So if one's (large corporate) permanent employer pays for one's MBA, is there tax payable on the £30K BIK?

        Comment


          #5
          Originally posted by umcool
          I am planning to do an executive MBA which is going to cost around £ 30000 over two years.

          £30000

          I bought mine of the internet for $400
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            #6
            Did my MBA privately before contracting.

            Comment


              #7
              Originally posted by TheFaqqer
              £30000

              I bought mine of the internet for $400
              Which university?

              Comment


                #8
                Originally posted by dude69
                Which university?
                Type it into Google - you'll find plenty of affiliated universities that will give you an MBA for the right sum of money, based on your life experience rather than needing to turn up to classes and do any work.

                Dead easy.
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                  #9
                  Hey I thought that forums were meant to encourage discussions and get new people on them more knowledge on the topic. There is no need for comments like "Get the idea? Bloody amateurs....". malvolio you don't sound too professional by comments like this on the forum.

                  Large corporations don't pay any taxes or even VAT on staff training and education. I don't see why a one man company should not get the same benefits.

                  Even other countries allow personal tax relief on education (US is an example), but I guess UK taxman just want the self employed professionals not to grow in terms of their qualifications.

                  Comment


                    #10
                    Originally posted by umcool
                    but I guess UK taxman just want the self employed professionals not to grow in terms of their qualifications.
                    Not true, as a business expense it needs to be seen to be directly benefitting the business.
                    "Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "


                    Thomas Jefferson

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