Paying for training....

[Rivendell]

Newbie question here I'm afraid. I need to undertake some training at a cost of approx £390.

I shouldn't really be paying myself a dividend for the next few months, but could do with using cash in my Business Account to ease cahflow. So, can I pay for this from my BMM account and be kosher with HMRC - how would I represent this? Can I recover the VAT? I'm on the FRV scheme. I am guessing no - but worth asking the Q.

Cheers

 

[thunderlizard]

So, can I pay for this from my BMM account and be kosher with HMRC - how would I represent this?

Yes. You can pay absolutely anything from your business account. The question is whether it benefits you personally. If so, you need to pay personal tax on the value of the benefit.
The rule for training courses is that it doesn't count as a personal benefit, as long as it's training that you need in order to continue to perform your current work, but not if it's to help you get a different work. There's a bit of leeway allowed: e.g. if you mainly do SQL Server DBA, and you're talking about Oracle training, you'll be OK because that's still relevant to "DBA" or "IT Consultant" or whatever you call yourselt. But if you're talking about lion taming training, you should pay tax on the value of the benefit. You'd sort that out on your annual P11d.

Can I recover the VAT? I'm on the FRV scheme.

No. The flat rate scheme does have a provision for reclaiming VAT on some things, but that's only for capital goods, and here you're talking about services.

 

[cojak]

My business pays for my training. I got my ITIL Expert from it. The training had a direct relevence to my specialism mind.

Google search on this forum and you'll find more info on the subject.

 

[Rivendell]

thank you both.