Reply to: company sponsership for PG Diploma

[Hex]

There's another good link here which clarifies quite a lot: <snip>

Some quotes:

“The cash spent investing in a new skill that puts a contractor in a position to seek new work cannot be claimed."

“When the skill is learnt, and the contractor is invoicing clients for applying that skill, further improvements to that skill are allowable, but HMRC won’t let you claim for the expense of getting you there.”

[Hex]

There's a guide to training expenses here: IT contractor guide to training expenses :: Contractor UK

[SueEllen]

Of course it wouldn't, a pharmacy diploma on the other hand....

Actually for IT work you don't even need that.

Though there is nothing stopping you from taking a pharmacy diploma (or related areas of study) once you are on-site and you realise the work requires you to have more detailed subject knowledge.

However then it would be up to you to argue with an HMRC inspector why your small business should pay for the course and not you personally.

[Spacecadet]

Take a different example.. if I wanted to get into delivering BI in to a pharmaceutical would i take a chemistry diploma? Would it help? Would it chuff.

Of course it wouldn't, a pharmacy diploma on the other hand....

[northernladuk]

Take a different example.. if I wanted to get into delivering BI in to a pharmaceutical would i take a chemistry diploma? Would it help? Would it chuff.

[northernladuk]

But taking a course on banking is NOT furthering his profession as an IT contractor. I still think the OP has got this all wrong. He keeps going on aabout wanting to do this course because he wants 'finacial experience'. Doing a course on your clients business is NOT 'financial experience' particularly if it is the agent that has stipulated it. They are looking for someone that has hands on experience delivering theiir speciality in a financial environment. Completely different. Arguments aside i think the OP is very misguided on his approach' expectations and outcome of this venture, particularly when it costs considerable time and expense.

I did 6 months at Radbroke and am constantly getting called about finance roles. Its that easy.

[Wanderer]

Then you need to change the main activity of your company to flower arranging before you sign up for and pay for the course.

A slightly silly example as escapeUK admits, and I'm sure that if by some happy co-incidence the employee's daughter just happened to be getting married then it would raise an eyebrow but honestly, the the other courses mentioned - why on earth would you do them other than to further your career? What duality of purpose do they have? It's not for HMRC to make value judgements on if the company director has made good business decisions or not, so long as it isn't a blatant piss take.

I mean it's not like someone who has never piloted an aircraft before taking flying lessons for a private pilot's license with a view to "getting a commercial pilot's license". An inspector would rightly ask if this had some recreational purpose too and perhaps ask to see the business justification. I know tax is a terribly grey issue so I understand that there are going to be different interpretations of the rules but I don't see anyone citing guidance from HMRC saying what's claimable and what's not...

Would any of the accountants here like to put their head above the parapet and comment on this one (before I make a complete idiot of myself)

[Spacecadet]

Then you need to change the main activity of your company to flower arranging before you sign up for and pay for the course.

As long as a good business case can be made for the training I don't see what the problem is.
The OP wants to get into a specific sector and see's the training as a method for doing that.

To look at it another way, he could be an Oracle specialist but has noticed that Microsoft have been making significant inroads in to the market. Will he have to get a contract using Microsoft products before he can pay for any Microsoft training out of his company funds?

[SueEllen]

Lets be clear, your current employment is your own company, not your client. So if your own company (ie you) decides to branch into flower arranging (as a silly example) then a course on such would be in line with the guidance.

Then you need to change the main activity of your company to flower arranging before you sign up for and pay for the course.

[SueEllen]

I'm doing a Masters at the moment and sticking that through the company
I don't see anything wrong with it, the course is in a subject which I've been contracting in for a few years and hope to continue to do so for a few more at least.

Even though I'm only 6 months into a 2 year part time course I've been able to up my rates to reflect the increase in expertise.

Fair enough.

However you have experience in the subject you are studying in.

[escapeUK]

Have a read of Appendix 9 of HMRC's guidance on expenses.

Work-related training is training for an employee’s current employment or a 'related employment'.
It is defined as any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which are, or are likely to prove, useful to the employee when performing his or her duties
.

Lets be clear, your current employment is your own company, not your client. So if your own company (ie you) decides to branch into flower arranging (as a silly example) then a course on such would be in line with the guidance.

[Spacecadet]

I'm doing a Masters at the moment and sticking that through the company
I don't see anything wrong with it, the course is in a subject which I've been contracting in for a few years and hope to continue to do so for a few more at least.

Even though I'm only 6 months into a 2 year part time course I've been able to up my rates to reflect the increase in expertise.

[kknandoo]

hmm!! I pick the one with a positive response.

Regarding the course, my long term plan is to go for MSc / MBA in banking. And regarding the contract, most of the job ads for fin. sector come with tag "financial exp. is necessary". My thinking is having a professional degree might give an edge.

[northernladuk]

Isnt't it funny when posters come on with a question. Get many responses and then just pick on the one you wanted to hear.

After looking at the course profile there is no way in hell that that is going to help you in your chosen career. It may give you an appreciation of what your client does but it doesn't help you technology career. As a contractor you work across multiple sectors where ever you are needed.

Expenses apart I can't even understand why you are going to spend 5k to get into banking? just do a stint at Barclays at Radbroke. That will set you up just as well.

[kknandoo]

A few people have posted quite negative comments about training in the past but reading HMRC's guidance, the definitions of what is allowable seem to be quite broad. It seems to me that the only thing you won't get away with is something that appears to be more of a jolly than a training course though even then you could argue that you are doing it to develop confidence and leadership skills.

Have a read of Appendix 9 of HMRC's guidance on expenses.

Work-related training is training for an employee’s current employment or a 'related employment'.
It is defined as any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which are, or are likely to prove, useful to the employee when performing his or her duties

Qualifying training is training which is undertaken with an employment or prospective employment in view.

A related employment is:
• any office or employment held with the employer or which is to be held with the employer or a connected person
• any such office or employment to which the employee has or can realistically expect to have a serious opportunity of being appointed.

My reading of the rules are than you can claim for travel and subsistence during the training too.

Go for it, I say.

Hi guys!!

Thanks for intersting comments and this turning out to be a good discussion.

My intention is, I have been working in Data Warehousing /BI arena for a quite a while now and I did have brief stint with Virgin Money for an year, though it was couple of years back.

I want to gain professional degree ( rather than just reading the books, that does mean that I won't be reading any books to gain the PG Dip) in the financial sector as I think that will improve my chance of getting in to Investment Banking . I have applied for this course with CEFIMS (Postgraduate Diploma in Banking), which they have formally accepted.

Since doing this course would improve my chances of gaining a contract thus better revenue for the Ltd Co., I am thinking I can put it through the company books, though my Accountant is refusing.

May be time to look for another one.

As always, many thanks for the comments.

--nandoo