Forum

• # 54842
• Tue 01 Mar 2011 07:18 PM

As we know we can claim general costs my Question is:
Can you count in the cost of courses that we have paid for also exams ect which we needed to become qualified my course has cost about 1300 or there about.
This covers 123 manual 2/3 comp and payroll management diploma
I am putting together a Business Plan.
Thanks everyone  

• marytrouble
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• # 54847
• Tue 01 Mar 2011 07:31 PM

I'm currently in the process of doing my business plan too, and the advice that I have been given is that you cannot charge anything that goes towards your qulifications that you need to set up the business.

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• # 54848
• Tue 01 Mar 2011 07:45 PM

tedius said:

“I'm currently in the process of doing my business plan too, and the advice that I have been given is that you cannot charge anything that goes towards your qulifications that you need to set up the business.”

• marytrouble
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• # 54854
• Tue 01 Mar 2011 08:40 PM

I would think - but please don't quote me - you will be able to put in costs of membership, practice licence & Prof Indemnity etc.

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• # 54865
• Tue 01 Mar 2011 11:12 PM

Tedius

I dont know who told you that but I do not think it is correct.

This has been covered in an other topic of sorts, You can claim back any legitimate expenses up to 7 years prior to the start of the business they go thorugh as costs on day one.

You can claim any expense that is incurred wholly and soley for carrying out your business and or trade as the courses relate directly to your business then I would treat them as claimable.

Any training, CPD costs are offsettable against taxes.

If anyone knows of anything to the contary please post.

Kind Regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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• # 54872
• Wed 02 Mar 2011 10:09 AM

My understanding is that the training costs to actually set up the business you cannot include but the costs of maintaining the business you can - for example I passed 1,2 and 3 set up my business then did Payroll and Self Assessment to expand my business.  These costs I can put through - any thoughts?

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• # 54874
• Wed 02 Mar 2011 10:19 AM

HMRC manual BIM42526 quotes:-

"Provided it is incurred wholly and exclusively for the purposes of the trade carried on by the individual at the time the training is undertaken, expenditure on training courses attended by the proprietor of a business (either as a sole trader, or in partnership with others) with the purpose of up-dating their skills and professional expertise is normally revenue expenditure, which is deductible from profits of the business."

My understanding would be that training undertaken pre start up of the business say level II is not allowable but training undertaken after start up to improve and expand knowledge say level III or payroll is deductible. If all courses were done before start up then there could be no deduction.

• Leslie Watson
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• # 54882
• Wed 02 Mar 2011 02:07 PM

An SCO explained it to me, as the costs incurred when "learning" a trade aren't deductable but courses taken to keep your knowledge up to date.....are?

I'd love to know what type of course doesn't have an element of personal advancement... unless it's one you learn nothing from

As the industry continues moving towards even closer regulation, I'd hope HMRC uses tax breaks as a way to encourage membership of professional bodies.
 

Btw: even the SCO acknowledged the contradiction in the law. 

Edited at 02 Mar 2011 02:08 PM GMT

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