Training Costs

[lithium147]

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.

[JamJarST]

Just to reiterate what I said earlier, something like a TOGAF (as opposed to a degree, for example) is most likely still claimable as a business expense, it's just not tax-deductible. This is a whole heap better than the OP having to pay for it personally.

I'm basing this on the link I posted earlier though, because as we all know IANAA

If it is not tax deductible, what would be the point of claiming it as a business expense?

[Greg@CapitalCity]

For my two cents, I see no problem with this. So long as training is paid for from the business bank account it can be quite wide reaching. Sure, if you are an IT contractor, don't get your company to pay for driving lessons, but anything within the IT field is fair game. It must be 'work-related' training and the HMRC talk about this being any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which:

(a) are, or are likely to prove, useful to the employee when performing his/her duties or
(b) will qualify or better qualify the employee to undertake the employment, or to participate in charitable or voluntary activities arising through the employment.

(see Employment income: work-related training: meaning of)

Just keep in mind that although the definition of work-related is very wide, HMRC will object if it is clear that the objective is for fun and entertainment, as opposed to motivational or training reasons.

[captainham]

If it is not tax deductible, what would be the point of claiming it as a business expense?

Because then you would have to pay it out of your own pocket, which will eat in to your tax-free allowance/10% tax divi allowance for the year.

[speling bee]

Ask yourselves how many permies go on training courses funded by their employees and consider whether this is counted as a business expense by the employer.

[malvolio]

For my two cents, I see no problem with this. So long as training is paid for from the business bank account it can be quite wide reaching. Sure, if you are an IT contractor, don't get your company to pay for driving lessons, but anything within the IT field is fair game. It must be 'work-related' training and the HMRC talk about this being any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which:

(a) are, or are likely to prove, useful to the employee when performing his/her duties or
(b) will qualify or better qualify the employee to undertake the employment, or to participate in charitable or voluntary activities arising through the employment.

(see Employment income: work-related training: meaning of)

Just keep in mind that although the definition of work-related is very wide, HMRC will object if it is clear that the objective is for fun and entertainment, as opposed to motivational or training reasons.

Don't think it's that wide. It has to be directly related to the work you do to generate your income stream. So you can argue technical skills to a degree and some peripheral kowledge such as ITIL, but not sales and marketing or accountancy for example. Basicially you're allowed to extend your range but not your repertoire.

[captainham]

Don't think it's that wide. It has to be directly related to the work you do to generate your income stream. So you can argue technical skills to a degree and some peripheral kowledge such as ITIL, but not sales and marketing or accountancy for example. Basicially you're allowed to extend your range but not your repertoire.

I would say Greg covered this when he said:

Sure, if you are an IT contractor, don't get your company to pay for driving lessons, but anything within the IT field is fair game.

[speling bee]

I am struggling with the narrow interpretation of this. I have no desire to do a bookkeeping course, but why is this not allowable. It is related to my employment by my Ltd. My employment is not my contract with the end client, as evidenced by the fact that I receive a salary when on the bench. I must be missing something, but what is it?

[captainham]

I am struggling with the narrow interpretation of this. I have no desire to do a bookkeeping course, but why is this not allowable. It is related to my employment by my Ltd. My employment is not my contract with the end client, as evidenced by the fact that I receive a salary when on the bench. I must be missing something, but what is it?

Because if you're an IT contractor, then IT is what you do, and HMRC allows you to expand your knowledge within the field that generates your income. In this example, bookkeeping is not what you do therefore it's not allowable; same reason why you couldn't put yourself down for a mechanical engineering course, it's not what you're currently in business to do.

[JamJarST]

Because then you would have to pay it out of your own pocket, which will eat in to your tax-free allowance/10% tax divi allowance for the year.

That doesn't sound right? You can't just take money out of your company and claim it as a non tax deductible expense and not pay tax on it personally, can you?