Umbrella Workers & Training Costs

[Protagoras]

'Proper Employees' have training funded by their employer while Contractors (can) have training funded by their LtdCos.

Umbrella workers are imagined to fund training from net income.

Does this lead to umbrella workers not bothering with training, not obtaining or retaining industry certifications?
i.e. is umbrella working essentially de-skilling, and most suitable for those soon to give up working?

When I ran a LtdCo, myself and the other employees undertook a least three weeks of training a year.
As a brolly worker, I've let industry certifications lapse since I intend to give up after my current engagement.

PS - I've long thought that all employees should be able to offset training costs against personal tax, including carry forward between tax years, to encourage people to invest in themselves and help deal with employers who are mean when it comes to funding training.

[ladymuck]

I funded my own training when I was an employee because I wanted to do a course of my choosing. Similarly, I've spent a small fortune on OU courses from net income because I have done them for interest rather than career progression.

If suitably motivated, people will fund themselves and see employer funded training as a perk where it's offered.

I don't think umbrella working will directly lead to deskilling. It's because you're used to training being an allowable expense that you're now unwilling to pay for it out of net income. For the majority of new entrants to contracting, they won't see any difference so will pay for training if there's a course they want to do. Long established contractors will have the common sense to determine whether a bit of paper will deliver sufficient ROI rather than letting the tax side of things be the primary determinant.

[Protagoras]

Thanks for that perspective. Reminds me that I'm long in the tooth and enjoyed a huge amount of employer funded training, including master's degree, in the early years of working. I was just spoiled really!

As you say, contractors should be looking at RoI.

I looked at doing some OU courses for interest, but was rather put off by the fees ...

[ladymuck]

OU fees have gone up and teaching quality has gone down. It's no longer worth it. There are better options with more traditional universities if you want to study something part time.

[northernladuk]

Remember being an employee of a brolly is nothing more than a payment vehicle. Absolutely nothing like an employee of a company where that person is a valuable resource worth investinging.

You can't compare proper employees to brolly employees.