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Previously on "Claiming Further Education Costs"

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  • ASB
    replied
    Originally posted by Brummie View Post
    When one is operating through their limited company, aren't they employee of their company (in addition to being a Director as well)?
    They are an officer (and exempt feom NMW) in their capacity as a director.

    They could also be an employee if they had a contract of employment.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Brummie View Post
    When one is operating through their limited company, aren't they employee of their company (in addition to being a Director as well)?
    What is the notice period stated in your contract of employment? Are you paying yourself the national minimum wage?

    http://www.contractoruk.com/news/00326.html

    Very old article though to be fair.

    Leave a comment:


  • Brummie
    replied
    Originally posted by northernladuk View Post
    You sure about that?
    When one is operating through their limited company, aren't they employee of their company (in addition to being a Director as well)?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Brummie View Post
    Have a contract with your company that by paying for your studies, you agree to work for the company as long as they want and that you will not seek salary increments or overtime for the next few years or so. After all its a different entity and you are an employee. It might be treated as a BIK which may result in a bit of tax increase.
    You sure about that?

    Leave a comment:


  • Brummie
    replied
    Have a contract with your company that by paying for your studies, you agree to work for the company as long as they want and that you will not seek salary increments or overtime for the next few years or so. After all its a different entity and you are an employee. It might be treated as a BIK which may result in a bit of tax increase.

    Leave a comment:


  • diesel
    replied
    Originally posted by northernladuk View Post
    But your LTD can fund it no?
    I meant if I cannot expense the fees and costs via my Ltd Company, I could not afford to pay for it myself in full (student loan is least preferred option).

    Leave a comment:


  • northernladuk
    replied
    Originally posted by diesel View Post
    BIM35660 is based on a English Tutor undergoing a Diploma in Law claiming for examination re-sit fees. Thus re-training into a different field and claiming the expense is obviously a no permissible. (there goes that 2 week course on Bar management in the Bahamas )

    If I did this Msc it will complement my services after undergoing a 2 year training course. (fingers crossed) (letters after my name are just a bonus). Shame if I could not undertake this course with funding via Ltd Co as lack of expertise in this area of science in the UK) (student loan is not an option for me).
    But your LTD can fund it no?

    Leave a comment:


  • diesel
    replied
    Originally posted by eek View Post
    That references an MBA - the OP is going for an MSc.... I suspect it would be a far more arguable case than a generic MBA.....
    BIM35660 is based on a English Tutor undergoing a Diploma in Law claiming for examination re-sit fees. Thus re-training into a different field and claiming the expense is obviously a no permissible. (there goes that 2 week course on Bar management in the Bahamas )

    If I did this Msc it will complement my services after undergoing a 2 year training course. (fingers crossed) (letters after my name are just a bonus). Shame if I could not undertake this course with funding via Ltd Co as lack of expertise in this area of science in the UK) (student loan is not an option for me).

    Leave a comment:


  • eek
    replied
    Originally posted by Kenny@MyAccountantFriend View Post
    HMRC make a special mention of not allowing claims for proprietors where it brings into place a recognised qualification such as a masters.

    Please see last paragraph of link: https://www.gov.uk/hmrc-internal-man...anual/bim35660
    That references an MBA - the OP is going for an MSc.... I suspect it would be a far more arguable case than a generic MBA.....

    Leave a comment:


  • diesel
    replied
    Originally posted by Kenny@MyAccountantFriend View Post
    HMRC make a special mention of not allowing claims for proprietors where it brings into place a recognised qualification such as a masters.

    Please see last paragraph of link: https://www.gov.uk/hmrc-internal-man...anual/bim35660
    Thanks for the information. My accountant tells me if it an allowable expense, as it complement my current Ltd Co services. Seems like I need to research this further.

    Leave a comment:


  • Kenny@MyAccountantFriend
    replied
    HMRC guidance

    HMRC make a special mention of not allowing claims for proprietors where it brings into place a recognised qualification such as a masters.

    Please see last paragraph of link: https://www.gov.uk/hmrc-internal-man...anual/bim35660

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by eek View Post
    My devil's advocate question would be that some companies are happy to pay for degrees and masters in subjects that are useful to them... Mrs Eek's masters was paid for by the council - many schools will pay for the school leadership qualifications even though it means the teacher will be leaving 2 years hence.

    The question is going to be how HMRC see it and that goes in a very interesting direction very quickly https://www.accountingweb.co.uk/any-...tax-deductible

    I really should have become a tax accountant....
    Well, it isn't too late. Part time study for both ATT and CIOT is very do-able if you are motivated enough. Never be out of work, for sure.

    Leave a comment:


  • northernladuk
    replied
    Training and tax I believe are handled completely differently in big organisations due to the grey area about what is benefit to the company and not so the people so you can't really compare with us just as Maslins says.

    Ignoring the big company argument looking at the OP's situation then it's pretty clear it doesn't meet the wholly and exclusively line so fairly black and white. MSc is the example we tend to use when explaining the situation to people as well oddly. I thought MSc was distinctly called out in the HMRC's examples somewhere as well?

    EDIT : Ah no it's the MBA I was thinking of.
    Last edited by northernladuk; 11 July 2017, 10:36.

    Leave a comment:


  • Maslins
    replied
    Originally posted by diesel View Post
    What the difference when a blue chip company sponsors (and pays for) some employees to attend similar courses to my Ltd company?
    The difference to my mind is motivation.

    The blue chip company will pay for training for one of their staff where it benefits the company. If it primarily benefits the individual, not the company, then barring nepotism situations they won't fund it. Basically HMRC can afford to be more relaxed on allowing those claims, as if the cost wasn't wholly and exclusively for the benefit of the trade, the company wouldn't have paid for it in the first place.

    For your typical contractor company, the line is much more blurred. You do have motivation to get your company to pay for something that benefits you, not the company...and you call the shots. That's not to say it's crystal clear not allowable, but HMRC's suspicion of training costs will be much higher for one person businesses.

    Leave a comment:


  • malvolio
    replied
    The simple answer is that YourCo has one skill for sale whereas a large company have many skills and the flexibility to move people between roles. therefore they can pay for educating their workforce since there is no individual benefit to BigCo. YourCo, on the other hand, hasn't got that option since you are (usually) the only fee earner, practising in one area..

    There's a lot of detail behind that simplistic statement but in essence YourCo can only claim for "training" that is directly and fully aligned to its line of business. Peripheral skills, such as business management and sales training, or even learning new technology, don't qualify.

    You may have a case if you can demonstrate that your MSc fully meets that requirement, but since it's you that gains the benefit rather than YourCo, I doubt it will work.

    Leave a comment:

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