Are course fee's tax deductable?

[essexsi]

Hi all,

Looked at various other threads and everyone mentions tools, van etc but not the actual tiling course fee's. They probably are but I just wanted it confirmed.

Thank you

Si

 

[andy-h]

cannot see why not.

 

[spanky]

A quick call to an accountant would give you a definative answer, but I would say a resounding yes.

You can reclaim fees and payments for up to 3 months before you actually start a business / go self employed from what I understand as long as if it's stock purchases, you still have the stock from a VAT point of view.

Preparation work etc.

 

[charlie1]

Grumpy where are you???

 

[grumpygrouter]

Yes, IMO the course fees are reclaimable, as long as you make the move into self employment and declare your self to the Revenue as doing so.

 

[frankenfurter]

I was advised by my local tax office and my accountant that costs for retraining for a new career, e.g becoming a tiler. Could not be claimed back on your tax.

But if you're already a tiler, you can claim the costs back as career development, CPD stuff.

Was asked to find this out for a friend about a month ago.

 

[Olz]

I was advised by my local tax office and my accountant that costs for retraining for a new career, e.g becoming a tiler. Could not be claimed back on your tax.

But if you're already a tiler, you can claim the costs back as career development, CPD stuff.

Was asked to find this out for a friend about a month ago.

:iagree: I was also told that training for a new career is not tax deductable, but training cost to enhance or add to existing skills is. Take this with a pinch of salt though the person who told me isnt a tax man so it's by no means a definative answer. Confused? you should be. lol

 

[grumpygrouter]

This is an issue I have heard before. I set up my limited company and then did my training, I have therefore put my costs through as training and education. In my opinion, the cost was entirely and soley for business purposes and therefore tax deductable. it is possible that HMRC may want to dispute this but they can say that for any cost you put through your accounts. As it is unless the tax man comes to you to do an investigation it is unlikely he will see what the costs are exactly. The worst they can do is disallow the expense, but you can then always appeal against their decision.

I think a lot depends how you enter the costs into your records.

 

[essexsi]

Thanks for the replies, yes I am confused!!
Is that a definite 3 month limit, as in you have to do the course and then set up business within a 3 month period. So does that mean if you had done a plastering course 2 years before then that could not be put through the business at all?

Blimey I thought the tiling would be the hard bit!!

Cheers Si

 

[Olz]

Thanks for the replies, yes I am confused!!
Is that a definite 3 month limit, as in you have to do the course and then set up business within a 3 month period. So does that mean if you had done a plastering course 2 years before then that could not be put through the business at all?

Blimey I thought the tiling would be the hard bit!!

Cheers Si

I'm sure i'll be corrected if im wrong, but i believe its a three month limit, because you have to notify the ILR no more than 3 months after you start trading.

 

[spanky]

Spot on, the limit is mainly for VAT, you can reclaim VAT on purchases made before starting business if it was for setting up the business, or stock, as long as you haven't already sold the stock.

The 3 month rule "kind of" carries over for starting a business with the inland revenue too.

You definately can't put through an invoice for training from 2 years ago.

As for other training within that 3 months I have no doubt the above post that mentions how you put it through the books will determine if it is deductable or not.

I would call it Consultation fees / or informational Resource fees / Professional fees if it were me. I wouldn't elaborate any more unless I was pressed.

 

[essexsi]

Thanks for everyones thoughts.

So best course of action is to register the business and then do the course within 3 months. Then enter the course under professional fees or something.

Now once registered the business is registered with the IR, any problems if you don't have any money coming in for a year. What I mean by this is, after the course I want to spend time shadowing a tiler. In this period although my business would be up and running, so to speak, I would not be doing any jobs of my own. What implications would that situation have on the tax return, as I would only have expenses to show. Hope that makes sense!?!

Cheers for your help.
Si

 

[Olz]

Thanks for everyones thoughts.

So best course of action is to register the business and then do the course within 3 months. Then enter the course under professional fees or something.

Si

The three month rule works the other way round mate, three months max without registering with the ILR, so you would officially start trading then notify the ILR within 3 months.

Although I think that you can claim for set up cost for more than three months before starting trading.

 

[grumpygrouter]

I'm sure i'll be corrected if im wrong, but i believe its a three month limit, because you have to notify the ILR no more than 3 months after you start trading.

Oli is correct here. It is the law that you MUST notify the IR of you commencing in self employment within 3 months of starting to trade. That is the important phrase and if you don't do so you can be fined.

VAT is an entirely separate issue and unless you intend to be registered straight away I would not concern yourself with it.

 

[Mark B]

Hello Si,

I've had the same advice from my accountant as Oli and Frankenfurter.

You can claim for ongoing training or if it's an extension for existing skills but not if it's re-training.

Mark