Doing a Masters can it be offset against tax?

[MarillionFan]

Have seen a course starting in Sept I'm interested in, so I'm thinking of taking a year out to go and do my MSC. It's in the area I presently work in, but technically is not going to boost my career prospects. Purely for my own reasons.

Probably been asked before, but are the fees for education tax deductible in any way? If you are on PAYE, Self Employed or work through a Ltd, are there any combinations which provide a benefit?

[WordIsBond]

Reading for you:

Other expenses: education and training: education costs

[MicrosoftBob]

So couldn't you put a clause in your employment contract with your company requiring you to attend any training or educational courses as deemed necessary for the fulfilment of your duties as an employee, and as long as it's relevant to your work hector can whistle

[TheFaQQer]

Why not ask the HR department at your permie job what they think?

[Kenny@MyAccountantFriend]

Masters are specifically disallowed if you are the proprietor of the company.

Expenses for training can only be claimed for maintaining existing skills and not the learning of new skills.

BIM35660 - Capital/revenue divide: intangible assets: proprietor's training courses

[MicrosoftBob]

Masters are specifically disallowed if you are the proprietor of the company.

Expenses for training can only be claimed for maintaining existing skills and not the learning of new skills.

BIM35660 - Capital/revenue divide: intangible assets: proprietor's training courses

So how do permies get sent on courses to learn new skills within incurring a BIK ?, are their employers breaking the rules or have they found a way round it

[northernladuk]

Training is seen as an investment to the company not just something claim tax on so they take the hit.

If you can learn a new skill for 1k and make 10k out of it next year the tax saving ceases to be the driver.

[TykeMerc]

So how do permies get sent on courses to learn new skills within incurring a BIK ?, are their employers breaking the rules or have they found a way round it

They can do it because they aren't the owners of the companies. The rules are pretty daft in truth, but clearly they're aimed at helping employers and target the tax wheeze of setting up a MyCo Ltd and expensing a degree just as a tax dodge.

I've worked with more than a few who have been sent by their employers to universities to do Undergrad and Grad degrees.

[Kenny@MyAccountantFriend]

As TykeMerc mentioned this is due to it being the employer’s decision, you may or may not have a say in the matter in some cases.

If you own the business there is a dual purpose and it could be viewed as a personal decision and as such HMRC will not offer you tax relief as you could leave the company once you finish the course.

An employee however will have a clawback agreement in the majority of cases, in that if they leave in a certain time frame they reimburse their employers.

[MarillionFan]

As TykeMerc mentioned this is due to it being the employer’s decision, you may or may not have a say in the matter in some cases.

If you own the business there is a dual purpose and it could be viewed as a personal decision and as such HMRC will not offer you tax relief as you could leave the company once you finish the course.

An employee however will have a clawback agreement in the majority of cases, in that if they leave in a certain time frame they reimburse their employers.

But is it tax deductible for a company if they pay for the employee? Is this a case of another kick for PSCs?