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Post Info TOPIC: Are training costs tax deductible?
JillPen


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Are training costs tax deductible?
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Hi

I completed a basic book-keeping training course last year and I'm currently completing my first tax returncry.
Can anyone advise whether I claim this training as a deductible expense on the returnconfused.

It was quite costly and it will make a big difference to my tax bill if I can include it.
 
Thanks.

Jill

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Dustin57


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Hi Jill

Was the training an update/refresher course, or were you brand new to it?

Dustin

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"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
JillPen


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Hi Dustin
I was completely new to book-keeping. I take it this makes a differenceconfused.

Thanks.

Jill

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Dustin57


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Yes it does unfortunately. Because you would have learn't a new skill it's not allowable as a business expense. If it had been just updating your current skills then it would have been ok. Sorry to be the bearer of bad news!

Dustin

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"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
JillPen


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Thanks Dustin. Not the answer I was hoping for but had a feeling I wouldn't be able to claim it. cry

Thanks again.smile

Jill

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Gemma12


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I thought that the over-ridding catch all was that the expense needed to be "wholly, necssary and exclusively" for business and if this is the case then you could claim it on a tax return

as the only reason for doing the course was to run the business surely this would qualify as tax deductable ??

Gemma

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Wendy


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The training has to directly relate to the income being generated by the business person at the time the training is taken for it to get tax relief. Given that you wouldn't start earning income until after you have completed the training it is not deductable. There is some argument for including it is a capital expense in the balance sheet but you would not get tax relief for this. It would be an intangible asset and therefore no capital allowances would be given.

The 'wholly, necessarily and exclusively' in performance of duties must be related to current income. Where new skills are learnt this would not be the case.

Hope this helps.

Wendy



-- Edited by Wendy at 08:55, 2008-08-13

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Gemma12


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I get it !!

thanks Wendy

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