Reply to: Claiming exam and training costs from HMRC?

[sadkingbilly]

really? - a 5.5 year old thread?
oh, dear.

[malvolio]

....just not if you're an umbrella employee! :-(

No, not alt all. The only allowable expenses for training are for subjects within your existing line of business, regardless of how you work. It's stupid, but it's the rules./

[CoolCat]

Currently working as an IT contractor and trying to navigate the minefield of expenses whilst being employed via an umbrella company. My question relates to claiming the costs of certification exams and training materials (books, video subscriptions, bootcamps etc..). Since I am not a limited company, I presume I would need to claim them back from HMRC in some way?

If that is the case and anyone here has done so before, I would be grateful if you could provide any advice and guidance on the best way to do so?

Thanks in advance

Red

I was in a similar position many years ago, and although I couldn't claim the expenses from the company I was on the payroll of, I did put it on my tax return, HMRC initially refused to refund the tax, but I appealed to the inland revenue adjudicator and won. So it is possible, but a complete pain in the bum to deal with. Rules may have changed since I did that, and your circumstances may not be the same as mine were then.

[Stevep42]

I was under an umbrella last year. Paid for an Azure exam, a Pluralsight sub and a weekend bootcamp. HMRC knocked back a P87 because those costs aren’t necessarily incurred in performing duties. Only my IET/BCS memberships were allowable from the approved list, everything else came from net pay. Best bet is getting the client to fund training so it’s employer provided and non-taxable. Going Ltd later let me put maintenance training through pre-tax. For the studying, realistic practice tests with full answers helped most. Did the same for the ramsay test, using PDFs and a mobile app.

[ladymuck]

You can't even claim expenses to re-train as an umbrella maker. Ironic isn't it...

Alanis, is that you?

[redordead]

You can't even claim expenses to re-train as an umbrella maker. Ironic isn't it...

BAH-DUM-TISH!

[Mordac]

....just not if you're an umbrella employee! :-(

You can't even claim expenses to re-train as an umbrella maker. Ironic isn't it...

[redordead]

The other way around - you can claim tax relief if it's for your current line of business but if you want to train to do something new you can't claim relief on it. So if your line of business is PM/BA work you can't claim relief if you want to retrain as a brick layer.

....just not if you're an umbrella employee! :-(

[ladymuck]

Pretty sure if you have to have them for your job they aren't an expense. Might be wrong.

The other way around - you can claim tax relief if it's for your current line of business but if you want to train to do something new you can't claim relief on it. So if your line of business is PM/BA work you can't claim relief if you want to retrain as a brick layer.

[ladymuck]

So basically if I was a limited company or self-employed/sole trader then I could claim tax relief on those expenses.

But as an umbrella employee, I am not entitled to claim tax relief for any training expenses or certification exam fees?

Kerching!

This is why, despite there being some excellent umbrellas out there, it is the worst of all worlds option.

[Lost It]

Pretty sure if you have to have them for your job they aren't an expense. Might be wrong.

[redordead]

So basically if I was a limited company or self-employed/sole trader then I could claim tax relief on those expenses.

But as an umbrella employee, I am not entitled to claim tax relief for any training expenses or certification exam fees?

[ladymuck]

Slightly wonky terminology. You don't claim anything off HMRC. That implies you're expecting them to pay for your training.

Some expenses can be offset against your tax bill to reduce the amount of tax you pay. You would still have to pay for the expenditure yourself.

However, as noted above, even that is not an option to you.

[GhostofTarbera]

You pay them via your net salary then


Nothing that’s it


You can’t claim back from anyone

[cojak]

There are no expenses of that kind if you work for an umbrella.