Can I claim an IT Training course as an expense?

[BolshieBastard]

Despite this being covered before a few times, the answer is, based on my limited understanding, is no. If you secured a contract before you attended the training course, then the issue may be different, as you may be able to demonstrate that the knowledge gained was required in order to carry out the work, where as if you do the course with the intent of securing work, then it's not allowed, based on my limited understanding.

Absolute bollocks. Of course you can claim it.

So, when you set up your own ltd company and it has no money to create itself, you put your hand in your pocket to engage an accountant to set it up etc, you telling me you cannot claim, as a business expense, the accountants cost and company set up costs? (and yes, I know you could set it up yourself)?

[pmeswani]

Absolute bollocks. Of course you can claim it.

So, when you set up your own ltd company and it has no money to create itself, you put your hand in your pocket to engage an accountant to set it up etc, you telling me you cannot claim, as a business expense, the accountants cost and company set up costs? (and yes, I know you could set it up yourself)?

I think there's a difference between Accounts fees and Training courses. I was addressing the question of Training courses on whether it can be claimed as an expense. I remember asking a question not so long ago about using a Travelcard for personal that I expensed via my Ltd company, was told explicitly that I couldn't, as it would be deemed as BIK. Accountancy fees are not BIK, it's a valid business expense. I think you are comparing apples with pears with that argument BolshieBastard.

[Ltd Co]

I mean, what difference would it make to HMRC if i decided to take the course now? It is directly linked to my current skill set now, as it was 3 months ago?

[malvolio]

I mean, what difference would it make to HMRC if i decided to take the course now? It is directly linked to my current skill set now, as it was 3 months ago?

Like I said, if it's directly in your line of business - for example training to get from Oracle 9 to Oracle 11 - then it's fully claimable. If it's learning a new skill, even one that will help run the business more effectively like marketing or accountancy, it isn't. Sounds like yours is.

However, as for "what difference would it make", quite a bit. You as a director have a set of legal responsibilitities, one of which is adhering to all extant tax legislation. It's probably not good practice to ignore inconvenient bits of the law on the off chance nobody notices.

HTH

[northernladuk]

A key piece of information is missing here. What is the course and what will you be doing. It is key because...

Specific deductions: administration: own training courses

Business purpose test
In considering the question of purpose, you should not take an unduly narrow view of whether the content of any particular course only up-dates existing skills of the individual. But if it is clear that, for example, a completely new specialisation or qualification will be acquired as a result of the expenditure, it is unlikely that the expenditure will be wholly and exclusively for the purposes of the existing trade. For general discussion of business purpose see BIM37050 onwards.

I bet that didn't make it any clearer.

As I say we need to know what course. If you are a DBA and you take a networking or some coding language it could fall under this?

[northernladuk]

Try this search in google..

training expense site:forums.contractor.co.uk

or Click here

We get asked this regularly so you might find some specific examples.

[northernladuk]

I mean, what difference would it make to HMRC if i decided to take the course now? It is directly linked to my current skill set now, as it was 3 months ago?

Well the bottom line is what is your attitude to risk. Everything we have said is completely irrelevant if you don't get investigated.

Some would bung it in, some wouldn't. Up to you.

Remember also you are only saving the tax on it so won't get the full amount back anyway. If it is black and white then claim it. If it is a bit grey but will only save you £100 in the long run why bother.

[malvolio]

Well the bottom line is what is your attitude to risk. .

Yours may be. Mine is more to do with obeying the law.

[northernladuk]

Yours may be. Mine is more to do with obeying the law.

So what? Obeying the law shows an attitude to risk as I suggested so no need for your correction.

And you more than anyone else here will know that the law in these things is so dam fuzzy it is nigh on impossible to obey it fully.

I would also suggest the comment was posed at the OP as it was his comment that was quoted.

[BolshieBastard]

I think there's a difference between Accounts fees and Training courses. I was addressing the question of Training courses on whether it can be claimed as an expense. I remember asking a question not so long ago about using a Travelcard for personal that I expensed via my Ltd company, was told explicitly that I couldn't, as it would be deemed as BIK. Accountancy fees are not BIK, it's a valid business expense. I think you are comparing apples with pears with that argument BolshieBastard.

The training course is 'wholly & exclusively' in regards fo securing work for the ltd company.

Obviously, if the training took place 6 months before company foundation then I'd agree it wouldnt be allowed. However, if within 3 months of company formation, it would be allowable.

A travelcard isnt a training course is it? It, a travelcard, wont normally be wholly and exclusively for the company's purposes.

Oh and change your accountant.