CT600 Computations

[12123434]

Hi,

I'm filling in the CT600 for the first time, and I just have a question about where to put one of my expenses. In the financial year I am submitting accounts for, I have made expenditure for Professional Development. I am certain that the expenditure is allowable, however there is no category that it seems to fit into on the CT600 computations page. Can someone tell me where it should go?

Thanks in advance for your help.

[stek]

Hi,

I'm filling in the CT600 for the first time, and I just have a question about where to put one of my expenses. In the financial year I am submitting accounts for, I have made expenditure for Professional Development. I am certain that the expenditure is allowable, however there is no category that it seems to fit into on the CT600 computations page. Can someone tell me where it should go?

Thanks in advance for your help.

It's not allowable.

[northernladuk]

Are you sure you are cut out for this?

[Greg@CapitalCity]

however there is no category that it seems to fit into on the CT600 computations page. Can someone tell me where it should go?

The CT600 computations page takes your Trading and professional profits as a starting point - there is no need to highlight items of expenditure that have already been included in your profit figure UNLESS they are disallowable for corporation tax.

[Jessica@WhiteFieldTax]

CT600 starts at adjusted profits.

Expenses are dealt with in reaching that figure, in your business accounts.

[northernladuk]

Have a look at the thread below which tells you how to search the forums...

http://forums.contractoruk.com/welco...uk-forums.html

Do a search for training or 'training expenses' and you will find out quite clearly why it is not allowed. This one is pretty black and white to be honest.

[Jessica@WhiteFieldTax]

Have a look at the thread below which tells you how to search the forums...

http://forums.contractoruk.com/welco...uk-forums.html

Do a search for training or 'training expenses' and you will find out quite clearly why it is not allowed. This one is pretty black and white to be honest.

Ahem, from from black and white.

OP refers to "Professional Develoment" if that's Continuing Professional Development, which would be a requirement for membership for quite a lot if professional associations, then it would be no doubt about its allowability.

The doubt only starts to come in when training is if a more voluntary nature and encompasses significant new skills.

[northernladuk]

Ahem, from from black and white.

OP refers to "Professional Develoment" if that's Continuing Professional Development, which would be a requirement for membership for quite a lot if professional associations, then it would be no doubt about its allowability.

The doubt only starts to come in when training is if a more voluntary nature and encompasses significant new skills.

Well for a start he didn't say 'Continuing'.

There are a couple of angles here and most of this will be in the detail of the OP's situation but I haven't come across any contractors that are members of such a body that put this stipulation. What you say could be correct but is it applicable to contractors. Would be interesting to hear what the OP's situation is but I doubt we will.

Also are you sure about your comments?

EIM32530 - Other expenses: education and training: education costs: case law

Similarly, no deduction is due for the costs of continuing professional education (CPE). That is so even if participation in such activities is compulsory, and failure to do so may lead to the employee losing his or her professional qualifications, and/or their job. CPE is not a duty of the employment for the purpose of Section 336. The Special Commissioners confirmed this point in Consultant Psychiatrist v CIR (SpC557), which was about CPE expenses incurred by a consultant employed by a NHS Trust. Note that Special Commissioners’ decisions do not set a binding precedent, but they do indicate the approach that a tribunal properly directed in the relevant law is likely to take to the point at issue. Another case in the same line is Parikh v Sleeman (63TC75), which concerned a doctor who attended seminars. Once again, a deduction was refused.

The paragraph below goes in to a case where it was allowed but only because... 'for training costs incurred by an employee should be allowed if the employee was employed on a training contract where training was an intrinsic contractual duty of the employment' ... which we do not have.

[Jessica@WhiteFieldTax]

@NLUK

The case you are quoting refers to deduction against employment income. Most contractors would be deducting against business income via company P&L. In old money the difference between Schedule E and Schedule D. For Schedule E, employment income, the deduction rules are wholly, exclusively and necessarily for Schedule D, business income, its wholly and exclusively.

In fact pretty much all training would be deductible under Schedule D rules for a PSC. Salient point is whether it then creates a BIK if employer (PSC) pays for it. CPD, it wouldn't.

Oddly we have a number of PSC clients who have CPD obligations - for a starter you'd be surprised how many accountants, whose experience is elsewhere engage someone like us to do the bits we are good at...

[northernladuk]

Oddly we have a number of PSC clients who have CPD obligations - for a starter you'd be surprised how many accountants, whose experience is elsewhere engage someone like us to do the bits we are good at...

Indeed but I would be even more surprised if any of us standard IT contractors had CPD obligations to a prof body. I am guessing the OP isn't a member of any accounting professional organisations

Anyway... my guess is we are now way of the mark and this isn't the case for the OP but he has enough information to know what to do. If he is indeed a member of some prof organisation that has CPD obligations he can claim. If he isn't he can't. That about sums it up?