Training Costs

[speling bee]

Yes, but the difficulty is that a big company spending money on training courses has a potentially negative impact the company's bottom line profit whereas a one man limited company putting it's director through a training course is directly benefiting the director and reduces the net tax paid.

For a large company there will be careful consideration of the cost/benefit of staff training but for a one man LTD company it's a no brainer because the director benefits and gets tax relief on the cost of the training.

Personally, I think that allowing tax relief on training would be the right thing to do (so long as it's not a jolly) but HMRC think otherwise.

But look at the example exclusions above. I as a director only get a direct benefit in as much as it enables me to increase the company's business. Unless I am pulling a fast one and paying for an expensive course up front and then closing the company down.

[Andrew at Boox]

It must indeed be related to your current work. Pre-training, languages, OU, MBA courses etc all fall outside...[/url]

Agreed. I think it's always important to remember that while business expenses should be wholly and exclusive, any personal benefit should be purely incidental.

MBA's, Honours degrees etc. are hardly for business purposes, but a reasonably shorter course required to minimise the jeopardy of losing a contract should be ok IMO.

[psychocandy]

Just a thought...is your accountant saying you can't put the course through your Ltd at all? As that link I provided suggests that even if it is not allowable, you can still put it through the Ltd but it won't attract any tax relief for CT, which is better than not being able to claim it all!

? What'd be the point in that? Might as well just pay for it with your credit card in this case?

[speling bee]

? What'd be the point in that? Might as well just pay for it with your credit card in this case?

If it doesn't attract CT relief but also doesn't incur any BIK personal taxes to you (is this the case?) then it's well worth it.

[JamJarST]

If it doesn't attract CT relief but also doesn't incur any BIK personal taxes to you (is this the case?) then it's well worth it.

Thats the point that I'm not sure about, I would assume it would be a BIK.

[SueEllen]

Personally, I think that allowing tax relief on training would be the right thing to do (so long as it's not a jolly) but HMRC think otherwise.

I think you find that some of HMRC's staff like other public sector permanent employees would have been sent on random training courses so don't see it that way.

They also provide courses themselves to the public aimed at small business people that in our cases travel to and from them are legitimate business expenses. (The courses are free and may use you attending the course as example subject matter.)

Also it's clear you and a few others, including one of the accountants, has no idea what sort of courses the OU and other colleges/universities do aimed at professional people.

For starters the OU courses are modules that last a few months. This means if a particular module is relevant to your skillset and your clientele there is nothing stopping you from putting this through as a business expense.

Many local colleges and universities realised years ago that they can make money from offering short courses in a variety of subjects aimed a professional people. Again if a short course is relevant and cheaper than going to private training provider there is nothing stopping you from doing it and putting it through as a business expense.

'Also colleges and universities tend to be VAT exempt meaning that there is no VAT issues for companies on the flat rate scheme unlike with private training providers.

[geoffreywhereveryoumaybe]

It isn't about a new skill

TOGAF is a very generic framework. It teaches you how to do enterprise architecture in a standardised manner. So its not really a new skill for anyone already in IT.

It is about getting certification that you can put on your cv so that the people looking for architects can tick a box and say that person is TOGAF certified.

The same with Prince2