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Training course expense

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    Training course expense

    Hi all, I have been contracting for a year (Ltd co) and am planning on taking a training course but have been left somewhat confused by the dialogue I have had with my accountant over this - hoping to get a straight answer here (though I'm starting to wonder if there is one).
    I've already searched the forum on this so felt like I understood the rules here but am now left unsure.

    My accountant has said that ideally my contract would specify the need for this training course (though how could I have won such a contract without that skill?) but failing that, asked a few questions which concerned me as follows:
    • If you had not completed this training course, would you still be able to trade with your customer? If the answer is yes, then the training course is not allowable.
    • If it is a current skill but not required for your contract then it would not be allowable.
    • If you are confident that the course is required for your contract and in the event you didn’t complete this course it would result in you not being able to continue in this current contract then that’s fine.


    So in summary, I need to be in a contract that has a direct need for me to take the course otherwise the contract would be terminated?

    I am not trying to branch off into another area or add a new skill, just brush up on my existing skills. I'm working as a BA and wish to do a BA training course, it is directly related to my line of work and my current contract as a BA - saying that, if I don't take the course, my contract will not suddenly end, I'm already doing the job.

    Can anybody advise?

    #2
    Originally posted by BAMike View Post
    Hi all, I have been contracting for a year (Ltd co) and am planning on taking a training course but have been left somewhat confused by the dialogue I have had with my accountant over this - hoping to get a straight answer here (though I'm starting to wonder if there is one).
    I've already searched the forum on this so felt like I understood the rules here but am now left unsure.

    My accountant has said that ideally my contract would specify the need for this training course (though how could I have won such a contract without that skill?) but failing that, asked a few questions which concerned me as follows:
    • If you had not completed this training course, would you still be able to trade with your customer? If the answer is yes, then the training course is not allowable.
    • If it is a current skill but not required for your contract then it would not be allowable.
    • If you are confident that the course is required for your contract and in the event you didn’t complete this course it would result in you not being able to continue in this current contract then that’s fine.


    So in summary, I need to be in a contract that has a direct need for me to take the course otherwise the contract would be terminated?

    I am not trying to branch off into another area or add a new skill, just brush up on my existing skills. I'm working as a BA and wish to do a BA training course, it is directly related to my line of work and my current contract as a BA - saying that, if I don't take the course, my contract will not suddenly end, I'm already doing the job.

    Can anybody advise?
    You accountant is being too cautious. Provided your contract SoW states that you are doing the type of work you intend to train in, that's all you need.

    At least that's all I need.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by cojak View Post
      You accountant is being too cautious. Provided your contract SoW states that you are doing the type of work you intend to train in, that's all you need.

      At least that's all I need.
      I'd go with this. Being a BA and just getting your certs up to date is as simple as the whole training debate could be. BA training in Prince2 to potentially take PM gig's on wouldn't but it's arguable. Etc.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I believe keeping skills fresh and up to date is a cost of business you incur work or no work. I believe the answer to be, no you cannot claim this. It fails wholly and exclusively test in my opinion too. But, IANAA.
        Public Service Posting by the BBC - Bloggs Bulls**t Corp.
        Officially CUK certified - Thick as f**k.

        Comment


          #5
          This sounds pretty odd to me. If I have a Prince2 foundation certification and I wanted to do the Prince2 practitioner certificate, surely that is allowed.

          You could argue it both ways.

          I don't understand how you can only expect to expense training for your current role.

          BTW I'm not arguing for French lessons

          Comment


            #6
            Well my company has paid for my training in the past and I think that this makes the difference.

            I've kept within the rules above and my accountant has never queried my decision, but maybe this is because I've always written a business case for the training (I never do any training unless I can forecast ROI).
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment


              #7
              Originally posted by BAMike View Post

              So in summary, I need to be in a contract that has a direct need for me to take the course otherwise the contract would be terminated?

              I am not trying to branch off into another area or add a new skill, just brush up on my existing skills. I'm working as a BA and wish to do a BA training course, it is directly related to my line of work and my current contract as a BA - saying that, if I don't take the course, my contract will not suddenly end, I'm already doing the job.

              Can anybody advise?
              I went trough this question many time with different accountants and overall view is that it is safe to claim anything that have no potential personal use and have relation to your occupation. Business insurance, professional courses, professional memberships etc. It should not be related to current revenue sources as you as business owner may want to expand and you need to look into new areas which may expand coverage of your professional services.

              You may want to read this: BIM42526 - Specific deductions: administration: own training courses

              I personally would go for any professional course that somehow related to my specialisation - to take ITIL course being IT engineer as an example. In your case, BA taking BA course - seems more than reasonable.
              Last edited by Sub; 27 April 2016, 16:40.

              Comment


                #8
                Originally posted by VillageContractor View Post
                This sounds pretty odd to me. If I have a Prince2 foundation certification and I wanted to do the Prince2 practitioner certificate, surely that is allowed.

                You could argue it both ways.

                I don't understand how you can only expect to expense training for your current role.

                BTW I'm not arguing for French lessons
                May be working for a French company/team with the expectation that over the course of the project the OP French skills should improve.

                Point is most short courses can be applicable to contact work.
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #9
                  I put my PRINCE2 through the Ltd. I'm not doing it for fun.

                  Comment


                    #10
                    Originally posted by SueEllen View Post
                    May be working for a French company/team with the expectation that over the course of the project the OP French skills should improve.

                    Point is most short courses can be applicable to contact work.
                    See I would have said a language would have failed the test. It's an enabler not a saleable skill. If an MBA is in the example if failing I would have said French sits along side. Interesting one.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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