Are books tax deductible?

[lightng]

If it helps you do your business then yes. You cannot claim for a book / course that teaches you how to be a life coach if your business is all about providing an IT service.

Note: Your home may be at risk if you decide to take any financial or accounting advice from Lightng.

[swamp]

Books are not always allowable - the expense has to be incurred "wholly exclusively and necessarily in the performance of the duties of the employment". If a book puts you in a position to do the job then that expense is not in the performance of the duties - the HMRC view is at http://www.hmrc.gov.uk/manuals/senew/SE32435.htm

Bob

nitpicky to say the least, these books can be for training purposes, but equally for reference material when coding.. just claim for them...

WHS

There is no way on God's earth HMRC could ever know why I really bought XML for Dummies.... But I suppose it follows one should always buy books during a contract and not whilst on the bench.

[Gonzo]

Books are not always allowable - the expense has to be incurred "wholly exclusively and necessarily in the performance of the duties of the employment". If a book puts you in a position to do the job then that expense is not in the performance of the duties - the HMRC view is at http://www.hmrc.gov.uk/manuals/senew/SE32435.htm

Bob

nitpicky to say the least, these books can be for training purposes, but equally for reference material when coding.. just claim for them...

WHS

There is no way on God's earth HMRC could ever know why I really bought XML for Dummies.... But I suppose it follows one should always buy books during a contract and not whilst on the bench.

I always took the same view, but I would expect Mr Jones' opinion on the matter to be authoritative so perhaps you should tread carefully.

[Bob Jones]

There is no way on God's earth HMRC could ever know why I really bought XML for Dummies

If that is what you have bought then it is definitely not allowable - if the book is to provide you with knowledge in order to do the job then it is not allowable - for an expense to be allowable it has to be incurred in the performance of the duties, in other words while you are performing the duties of the employment - an expense which puts you in a position to perform the duties is not incurred while you are performing the duties and is therefore not allowable.

Bob

[Bob Jones]

see

http://www.hmrc.gov.uk/manuals/eimanual/EIM32530.htm

Bob

[NotAllThere]

How on earth do largecos get away with having technical libraries for their staff?

Do they pay for them out of taxed income?

[Bob Jones]

How on earth do largecos get away with having technical libraries for their staff?

Two reasons - one is that the test for expenses relating to employment are much more strict that those in business and second a technical library is likely to be used whilst doing the job and would qualify ... for example if I were to purchase a library of tax cases, that would be allowable (as capital allowances) as I would be using the library during the course of my day to day work .. but if I decided to branch out into another area of tax - say inheritance tax and I went on a course and purchased text books the expense would not be allowable as the whole package would be to put me in a position to perform that area of work ...
A driving instructor cannot the claim the cost of a book "How to teach driving" .. a writer cannot claim the cost of a book "All you need to know about writing skills" .... these are expenses that put the person in the position to do the job not incurred whilst doing the job.
There is a thin dividing line - text books that are used to attain a qualificaton can become the reference book of the future but if the claim really is "XML for dummies" then it has to be to put the person in a position and not incurred whilst doing the job.

Bob

[NotAllThere]

Two reasons - one is that the test for expenses relating to employment are much more strict that those in business...

That's part of where I get confused - the difference between an employment expense and a business expense.

I understand that a diver can't buy a book "How to Dive". But can WeSink ltd by the book to stick on its bookshelf. Further, can WeSink ltd buy a "Advanced Diving Techniques" for its staff.

In my industry sector, the big consultancies (and indeed end-clients) buy their staff books, send them on training courses to learn new skills, or new technologies related to their existing skills., subscribe to journals which explain the latest techniques etc. Do they really not claim these against their corp tax?

[blacjac]

If I understand you correctly Bob, then my company can't buy a "Learning Java" book for an employed developer, but my company could employ a trainee developer and buy a "Learining Java" book for them, as the very nature of their job is to learn to be a programmer.

Is that correct?

[SueEllen]

If I understand you correctly Bob, then my company can't buy a "Learning Java" book for an employed developer, but my company could employ a trainee developer and buy a "Learining Java" book for them, as the very nature of their job is to learn to be a programmer.

I'm confused as if the employed developer was skilled in languages similar to Java and was given Java work to do, then in the above case they wouldn't be allowed to buy a "Learning Java" book even though the book would both be a guide and a reference.