Reply to: Self employed training allowable for tax

[Andrew@Wisteria]

FaQQer has neatly summed it up IMHO.

Generally the acquisition of new knowledge is not allowable while the updating of existing knowledge is.

Exactly.

[piebaps]

FaQQer has neatly summed it up IMHO.

Generally the acquisition of new knowledge is not allowable while the updating of existing knowledge is.

[Lost It]

Are you learning a new skill? If so, then you can't.

Are you updating or re-certifying an existing skill? If so, then you can.

That's about as clear as it can be. So my "tickets" that I need to do my job are claimable. Shame I can't back date it. I thought it was a "you have to have this therefore it's not an expense" situation.

[TheFaQQer]

But I am self-employed, does that mean I can't make the tax claim?

Are you learning a new skill? If so, then you can't.

Are you updating or re-certifying an existing skill? If so, then you can.

[gaff]

I'll go back to my original comment, and drop this here:

The situation as regards tax relief for training paid for by employers is very different. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

https://www.conscious.co.uk/site/lib...eductible.html

And lets remember, we're not self-employed, but employees.

But I am self-employed, does that mean I can't make the tax claim?

[TheFaQQer]

Even in my own business, I feel far more comfortable claiming for a staff member going on a certain course, even if it's fairly clearly a "new skill", than I do for myself. I wouldn't pay for the staff member to do it unless it was for the benefit of the business. I might for myself.

You should ask your accountant what they think

[Maslins]

I'll go back to my original comment, and drop this here:

The situation as regards tax relief for training paid for by employers is very different. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

https://www.conscious.co.uk/site/lib...eductible.html

And lets remember, we're not self-employed, but employees.

Yes, but...

For businesses where the employee receiving the training isn't the owner, those in charge of the biz are only likely to agree to put the person on that course where it is wholly and exclusively for the benefit of the trade.

For businesses where the employee is the owner, the above won't always be the case. Eg you might want to learn to play the guitar/cook/salsa dance (or perhaps less extreme examples). It's got nothing to do with your business, no business benefit, but you might be inclined to try to "blag it" through the business.

Even in my own business, I feel far more comfortable claiming for a staff member going on a certain course, even if it's fairly clearly a "new skill", than I do for myself. I wouldn't pay for the staff member to do it unless it was for the benefit of the business. I might for myself.

[malvolio]

I'll go back to my original comment, and drop this here:

The situation as regards tax relief for training paid for by employers is very different. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

https://www.conscious.co.uk/site/lib...eductible.html

The quoted article fully supports my position, so I don't see your point.

And lets remember, we're not self-employed, but employees.

Wrong. We're office holders and service providers

[b r]

But to answer the original question, the training is allowable if - and only if - it is line with the principle fee-earning activity of the business. So in the OP's case I would say it is therefore claimable since the training is maintaining existing skills rather than developing new ones.

I'll go back to my original comment, and drop this here:

The situation as regards tax relief for training paid for by employers is very different. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

https://www.conscious.co.uk/site/lib...eductible.html

And lets remember, we're not self-employed, but employees.

[NotAllThere]

If they believe it was a genuine mistake, it would normally be tax owed + interest from the date it was due.

[gaff]

Hypothetically if you put courses down as an expense that in your opinion were allowable, but after HMRC investigation they decided that they weren't allowable, what would the consequence be, would you only have to pay the tax owed if you hadn't claimed or would there be a fine on top of that?

[malvolio]

"Reclaiming VAT on training"

What has that got to do with what I was asking?

Quite a lot, actually. If it isn't "wholly and exclusively" for business you normally can't claim the VAT on it, but in the case of training you definitely can't. (There are pages of HMRC guidance notes on this somewhere on their website).

But to answer the original question, the training is allowable if - and only if - it is line with the principle fee-earning activity of the business. So in the OP's case I would say it is therefore claimable since the training is maintaining existing skills rather than developing new ones.

[Scruff]

If you were to pay for training that is allowable for tax, is it the date you pay for it, or actually go on the training that counts for what financial year you claim it in?

It's just that I'm paying for some training next week, but doing it at a later date, which is in the next financial year, so which one would it fall in?

The date of the Supplier's invoice (in the name of YourCo.)

[gaff]

linky

"Reclaiming VAT on training"

What has that got to do with what I was asking?

[SueEllen]

If you were to pay for training that is allowable for tax, is it the date you pay for it, or actually go on the training that counts?

It's just that I'm paying for some training next week, but doing it at a later date, which is in the next financial year, so which one would it fall in?

linky