Reply to: Claiming MBA fees from Limited company

[SueEllen]

Whats the pay like at HMRC?

They have performance targets to meet and it's not their money they spend harassing you.

Oh and they have public sector pensions.

[SueEllen]

Putting one through that isn't valid is taking the piss isn't it? The fact you don't put them all through won't have hector thanking you.

Actually I was updating skills I already had which I never thought were useful until I was on that client site.

The courses I didn't put through were for interest but yes I later had work involving those skills. However at the time I did those particular courses I didn't claim:
1. I didn't know I would have work involving those skills
2. I didn't already have skills in those subject areas to update

[malvolio]

Whats the pay like at HMRC?

[russell]

Fine, do it your way. It's failing in your duty both as a director and as a taxpayer knowingly to make a false declaration. but WGAS, it's your court case.

Whats the pay like at HMRC?

[malvolio]

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

Fine, do it your way. It's failing in your duty both as a director and as a taxpayer knowingly to make a false declaration. but WGAS, it's your court case.

[ASB]

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

Believe me that's nowhere near the worst that can happen. I eventually negotiated 20% penalties (my accountant though I got off very lightly), plus statutory interest on the elements I had to concede to HMIT.

[russell]

The key word is "will". It is not "is".

Like you I always took a fairly cavalier attitude and would claim the stuff and hope for the best, but that doesn't make it correct. By all means do this, you don't have to justify it to anybody here, just HMIT at the point you get an investigation.

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

[ASB]

This will develop into a product that a client will buy, so it will be trade.

The key word is "will". It is not "is".

Like you I always took a fairly cavalier attitude and would claim the stuff and hope for the best, but that doesn't make it correct. By all means do this, you don't have to justify it to anybody here, just HMIT at the point you get an investigation.

[russell]

If it's in house, it's not your trade; "trade" means someone else is paying for your expertise.

This will develop into a product that a client will buy, so it will be trade.

[LisaContractorUmbrella]

It is not often I say this but listen to Mal on this one Russell - he's right (Oh the shame )

[malvolio]

Software projects cover a wide gamut of domains, I am currently working on one that requires lots of Math but this is in house to my co not for a client. To many grey areas I'm afraid.

If it's in house, it's not your trade; "trade" means someone else is paying for your expertise.

[russell]

No, the rules are perfectly clear: training cost is not a BIK if it enhances your primary trade, eveything else is. YourCo has one line of trade, so what is allowable is perfectly plain.

IBM has many lilnes of trade, so can tre-train its staff as necessary.

Now do you understand the difference? More importantly, does your accountant?

Software projects cover a wide gamut of domains, I am currently working on one that requires lots of Math but this is in house to my co not for a client. To many grey areas I'm afraid.

[malvolio]

The rules are vague here, and my modus operandi when rules are vauge is to interpret it as I see it, if Hector sees it differently then he can let me know if he ever investigates.

No, the rules are perfectly clear: training cost is not a BIK if it enhances your primary trade, eveything else is. YourCo has one line of trade, so what is allowable is perfectly plain.

IBM has many lilnes of trade, so can tre-train its staff as necessary.

Now do you understand the difference? More importantly, does your accountant?

[russell]

The rules are vague here, and my modus operandi when rules are vauge is to interpret it as I see it, if Hector sees it differently then he can let me know if he ever investigates.

[northernladuk]

Off course I didn't attempt to put every single OU module I did through the company books as that would be taking the p*ss.

And yes I did gain a qualification.

Putting one through that isn't valid is taking the piss isn't it? The fact you don't put them all through won't have hector thanking you.