MBA Fees

[valluvan]

I have recently joined a part time MBA course and was under the impression that you can put this course fee as a business expense.

But my accountant thinks that this is not an expense, incurred wholly and exclusively for the business and says it will be declared in p11d thus incurring more tax/nics

But my argument is that this expense is going to be useful to the business as it is going to benefit from training/sponsoring its employee/director?

What does other accountant in this forum think?

By the way mine is a well known accountant who frequents thsi forum.

Cheers
Val

[Sockpuppet]

No. Its not a business expense. Your accountant is right.

But my argument is that this expense is going to be useful to the business as it is going to benefit from training/sponsoring its employee/director?

My co will benefit from employees with less stress doesn't mean that I'm going to be able to send myself to Hawaii and claim this against tax.

[stek]

I think not allowable. The company only benefits because it's employee has benefitted.

[prozak]

Not allowable.

Where you doing the MBA? LBS?

[valluvan]

Thanks..any other inputs from the accountants?

If its included in the p11d what is the downside? will it be a huge hit in terms of tax/NICs?

[Sockpuppet]

If its included in the p11d what is the downside? will it be a huge hit in terms of tax/NICs?

It'll cost you the same as if you got the cash equivalent through PAYE. Better for yourself to dividend it to yourself.

[northernladuk]

Been asked a number of times and there is a little argument around this but generally everyone agrees this is not claimable...

http://forums.contractoruk.com/accou...dying-mba.html

http://forums.contractoruk.com/accou...enses-mba.html

http://forums.contractoruk.com/accou...h-company.html

http://forums.contractoruk.com/accou...a-expense.html

Straight from the HMRC here

BIM35660 - Capital/revenue divide - intangible assets: Proprietor's training courses

You should therefore allow proprietors a deduction for expenditure that merely updates existing expertise or knowledge but disallow any expenditure that provides new expertise or knowledge (particularly where it brings into existence a recognised qualification like an Master of Business Administration).

[Clare@InTouch]

I'd say no - it's not wholly and exclusively for business purposes, it's more of a personal gain. Could you argue it's entirely 'work related'?

There's lots of guidance from HMRC here: Employment income: further education and training costs: introduction

If you do think you can argue it, then make sure any payments go direct from the company bank account, and any invoices are in the company name. And hope if HMRC investigate that you can argue your point convincingly enough!

[northernladuk]

I'd say no - it's not wholly and exclusively for business purposes, it's more of a personal gain. Could you argue it's entirely 'work related'?

There's lots of guidance from HMRC here: Employment income: further education and training costs: introduction

If you do think you can argue it, then make sure any payments go direct from the company bank account, and any invoices are in the company name. And hope if HMRC investigate that you can argue your point convincingly enough!

Bearing in mind they name this one particularly when talking about disregarding it I would say that will be impossible

[Clare@InTouch]

Bearing in mind they name this one particularly when talking about disregarding it I would say that will be impossible

A lot of people are still happy to try, and it can lead to some interesting justifications!