Can I claim an IT Training course as an expense?

[malvolio]

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.

Sigh....

"Wholly and exclusively" is not in the least bit fuzzy. Heigh ho.

[MarillionFan]

Hello everyone

I decided to move from permanent employment into the world of contracting back in August. Before setting up my company, I decided to take an IT course which I needed, to enhance my chances of getting specific IT roles. It costs me £499, which i paid out of my own pocket. Now that my limited company (active a week after my course ended) business account and accountants are all set up, could I claim this fee as an expense? I have the invoice and bank statements showing evidence that i paid for it (and it helped me secure the contract)

Any thoughts and advice will be greatly appreciated.

Yes expense it. In theory you should have set up the Ltd first then done it but WGAS apart from Malvolio who from what I can tell failed the exams to become a tax inspector.

[JamJarST]

No, that's the point. BigCo has several lines of business as part of its fee-earning activities, you only have one

That doesn't sound right. I used to work for Black & Decker, it only had one real revenue stream and it was a BigCo. My company provides IT consultancy specialising in SAP FI/CO, does that mean I can claim for any SAP FI/CO training I pay for?

[Joeman]

Before the LTD company was formed, could you not be classed as sole trader? then you decided to make youre company Ltd...... lot of effort for 500quid though...

[Ltd Co]

Thank you all for your comments. They have been truly helpful and insightful! I had initially spoken to a few friends and colleagues that have been contracting for years, and all of them said they could see no problem in claiming it as an expense.

Yes, this course is linked to one of the automated tools that are heavily used in many industries now and used by either developers or test analysts, which is my field.

[malvolio]

That doesn't sound right. I used to work for Black & Decker, it only had one real revenue stream and it was a BigCo. My company provides IT consultancy specialising in SAP FI/CO, does that mean I can claim for any SAP FI/CO training I pay for?

Yes...

Jeez, it's not difficult. If the training can be shown to be directly related to your trade, which is defined as whatever it is you do to earn your income - then it's claimable against tax. If it's not directly related, it isn't.

So for example, I can expense ITIL Manager's training, no problem, since I'm primarily a Service Management consultant. I can't expense a course in Java since coding is not what MyCo does for a living.

And you can claim for any damned thing you like, it's your company. The only question is does a personal BIK arise as a result. And if it does, and you don't pay it, you're breaking the law. Whether or not you think that's important is up to you.

How hard is that?

[MarillionFan]

Yes...

Jeez, it's not difficult. If the training can be shown to be directly related to your trade, which is defined as whatever it is you do to earn your income - then it's claimable against tax. If it's not directly related, it isn't.

So for example, I can expense ITIL Manager's training, no problem, since I'm primarily a Service Management consultant. I can't expense a course in Java since coding is not what MyCo does for a living.

And you can claim for any damned thing you like, it's your company. The only question is does a personal BIK arise as a result. And if it does, and you don't pay it, you're breaking the law. Whether or not you think that's important is up to you.

How hard is that?

That is absolute crap.

You Ltd company is defined by your Sic code. Which in all of our cases will be Software Consultancy or some derivation. The comparison between ITIL and Java is absolutely laughable. If you need to crosstrain your staff for new skills then it is 100% expensable.

[SueEllen]

That is absolute crap.

You Ltd company is defined by your Sic code. Which in all of our cases will be Software Consultancy or some derivation. The comparison between ITIL and Java is absolutely laughable. If you need to crosstrain your staff for new skills then it is 100% expensable.

Agreed the comparison should be between doing say marketing course and doing a ITIL course. As not everyone uses exactly the same skillset throughout their contracting career.

Even then there will be cases where claiming for a marketing course is valid.

[malvolio]

OK, don't care, pissed off, clearly I know nothing. But if you think ITIL and JAVA are comparable skills, you're in the wrong industry.

[MarillionFan]

OK, don't care, pissed off, clearly I know nothing. But if you think ITIL and JAVA are comparable skills, you're in the wrong industry.

Actually, I have both these skills including the marketing mentioned above plus a dozen 'unrelated' skills beside. If you're a one trick ITIL pony than that's your choice but the most successful longterm contractors have generalistic skills and/or upgrade or upskill.

So your argument holds no water unless you are constrained by your own ability.