MBA Fees

[Jerry]

As Clare said, if the MBA is supplied to your company (ie invoiced to your company) and paid for from the business bank account, then its within the realms of possibility (though at the 'still not claimable' end of the spectrum). If you signed up for the MBA yourself, and not through your company, then forget about any justifications - it won't fly.

If you pay yourself a small salary through your business (say £7-10k per year) AND if the expense is not claimable as a business expense, don't claim it as a P11D expense. The tax/NIC you will pay will exceed any Corporation Tax savings - better in this case just to pay from your personal bank account funded from ltd company salary/dividends.

Happy studying!

It's nuts. I got an MBA so i could get better roles, bill more and thus pay more tax. But then that's the tax system for you. Write off $6bn for Vodafone. Hit the little guy. Company cars is another one. They tax you on the value of the car, but (if you are an employee of a big company) you don't own that car. The benefit you are getting is not paying the lease charge. Or fuel duty. First pay us duty, then pay us vat on that duty.

[Greg@CapitalCity]

Thanks..any other inputs from the accountants?

As Clare said, if the MBA is supplied to your company (ie invoiced to your company) and paid for from the business bank account, then its within the realms of possibility (though at the 'still not claimable' end of the spectrum). If you signed up for the MBA yourself, and not through your company, then forget about any justifications - it won't fly.

If you pay yourself a small salary through your business (say £7-10k per year) AND if the expense is not claimable as a business expense, don't claim it as a P11D expense. The tax/NIC you will pay will exceed any Corporation Tax savings - better in this case just to pay from your personal bank account funded from ltd company salary/dividends.

Happy studying!

[Clare@InTouch]

Bearing in mind they name this one particularly when talking about disregarding it I would say that will be impossible

A lot of people are still happy to try, and it can lead to some interesting justifications!

[northernladuk]

I'd say no - it's not wholly and exclusively for business purposes, it's more of a personal gain. Could you argue it's entirely 'work related'?

There's lots of guidance from HMRC here: Employment income: further education and training costs: introduction

If you do think you can argue it, then make sure any payments go direct from the company bank account, and any invoices are in the company name. And hope if HMRC investigate that you can argue your point convincingly enough!

Bearing in mind they name this one particularly when talking about disregarding it I would say that will be impossible

[Clare@InTouch]

I'd say no - it's not wholly and exclusively for business purposes, it's more of a personal gain. Could you argue it's entirely 'work related'?

There's lots of guidance from HMRC here: Employment income: further education and training costs: introduction

If you do think you can argue it, then make sure any payments go direct from the company bank account, and any invoices are in the company name. And hope if HMRC investigate that you can argue your point convincingly enough!

[northernladuk]

Been asked a number of times and there is a little argument around this but generally everyone agrees this is not claimable...

http://forums.contractoruk.com/accou...dying-mba.html

http://forums.contractoruk.com/accou...enses-mba.html

http://forums.contractoruk.com/accou...h-company.html

http://forums.contractoruk.com/accou...a-expense.html

Straight from the HMRC here

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

You should therefore allow proprietors a deduction for expenditure that merely updates existing expertise or knowledge but disallow any expenditure that provides new expertise or knowledge (particularly where it brings into existence a recognised qualification like an Master of Business Administration).

[Sockpuppet]

If its included in the p11d what is the downside? will it be a huge hit in terms of tax/NICs?

It'll cost you the same as if you got the cash equivalent through PAYE. Better for yourself to dividend it to yourself.

[valluvan]

Thanks..any other inputs from the accountants?

If its included in the p11d what is the downside? will it be a huge hit in terms of tax/NICs?

[prozak]

Not allowable.

Where you doing the MBA? LBS?

[stek]

I think not allowable. The company only benefits because it's employee has benefitted.

[Sockpuppet]

No. Its not a business expense. Your accountant is right.

But my argument is that this expense is going to be useful to the business as it is going to benefit from training/sponsoring its employee/director?

My co will benefit from employees with less stress doesn't mean that I'm going to be able to send myself to Hawaii and claim this against tax.

[valluvan]

I have recently joined a part time MBA course and was under the impression that you can put this course fee as a business expense.

But my accountant thinks that this is not an expense, incurred wholly and exclusively for the business and says it will be declared in p11d thus incurring more tax/nics

But my argument is that this expense is going to be useful to the business as it is going to benefit from training/sponsoring its employee/director?

What does other accountant in this forum think?

By the way mine is a well known accountant who frequents thsi forum.

Cheers
Val