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View Full Version : Doing a Masters can it be offset against tax?



MarillionFan
16th July 2015, 11:17
Have seen a course starting in Sept I'm interested in, so I'm thinking of taking a year out to go and do my MSC. It's in the area I presently work in, but technically is not going to boost my career prospects. Purely for my own reasons.

Probably been asked before, but are the fees for education tax deductible in any way? If you are on PAYE, Self Employed or work through a Ltd, are there any combinations which provide a benefit?

WordIsBond
16th July 2015, 11:28
Reading for you:

Other expenses: education and training: education costs (http://www.hmrc.gov.uk/manuals/eimanual/eim32525.htm)

MicrosoftBob
16th July 2015, 11:32
So couldn't you put a clause in your employment contract with your company requiring you to attend any training or educational courses as deemed necessary for the fulfilment of your duties as an employee, and as long as it's relevant to your work hector can whistle

TheFaQQer
16th July 2015, 11:54
Why not ask the HR department at your permie job what they think?

Kenny@MyAccountantFriend
16th July 2015, 12:07
Masters are specifically disallowed if you are the proprietor of the company.

Expenses for training can only be claimed for maintaining existing skills and not the learning of new skills.

BIM35660 - Capital/revenue divide: intangible assets: proprietor's training courses (http://www.hmrc.gov.uk/manuals/bimmanual/bim35660.htm)

MicrosoftBob
16th July 2015, 13:47
Masters are specifically disallowed if you are the proprietor of the company.

Expenses for training can only be claimed for maintaining existing skills and not the learning of new skills.

BIM35660 - Capital/revenue divide: intangible assets: proprietor's training courses (http://www.hmrc.gov.uk/manuals/bimmanual/bim35660.htm)

So how do permies get sent on courses to learn new skills within incurring a BIK ?, are their employers breaking the rules or have they found a way round it

northernladuk
16th July 2015, 14:28
Training is seen as an investment to the company not just something claim tax on so they take the hit.

If you can learn a new skill for 1k and make 10k out of it next year the tax saving ceases to be the driver.

TykeMerc
16th July 2015, 14:34
So how do permies get sent on courses to learn new skills within incurring a BIK ?, are their employers breaking the rules or have they found a way round it

They can do it because they aren't the owners of the companies. The rules are pretty daft in truth, but clearly they're aimed at helping employers and target the tax wheeze of setting up a MyCo Ltd and expensing a degree just as a tax dodge.

I've worked with more than a few who have been sent by their employers to universities to do Undergrad and Grad degrees.

Kenny@MyAccountantFriend
16th July 2015, 17:41
As TykeMerc mentioned this is due to it being the employer’s decision, you may or may not have a say in the matter in some cases.

If you own the business there is a dual purpose and it could be viewed as a personal decision and as such HMRC will not offer you tax relief as you could leave the company once you finish the course.

An employee however will have a clawback agreement in the majority of cases, in that if they leave in a certain time frame they reimburse their employers.

MarillionFan
16th July 2015, 18:30
As TykeMerc mentioned this is due to it being the employer’s decision, you may or may not have a say in the matter in some cases.

If you own the business there is a dual purpose and it could be viewed as a personal decision and as such HMRC will not offer you tax relief as you could leave the company once you finish the course.

An employee however will have a clawback agreement in the majority of cases, in that if they leave in a certain time frame they reimburse their employers.

But is it tax deductible for a company if they pay for the employee? Is this a case of another kick for PSCs?

TheCoconutDog
16th July 2015, 18:42
But is it tax deductible for a company if they pay for the employee? Is this a case of another kick for PSCs?

I don't think it is when you read some of the above links (e.g. http://www.hmrc.gov.uk/manuals/eimanual/eim32525.htm). The fact that some put this through probably means they just haven't been caught.

TheFaQQer
17th July 2015, 08:35
But is it tax deductible for a company if they pay for the employee? Is this a case of another kick for PSCs?

Why do you care - you're a permie.

MarillionFan
17th July 2015, 09:38
Why do you care - you're a permie.

Because I was planning to quit my permie role and go back to Uni, but do some contracting on the side.

Because it's in the tax year, I was wondering if I could claim against my Self Assessment for this year, or whether if I had a new Ltd company up, I could do it as an expense.

(Up here for thinking mate, down there for dancing)

MarillionFan
27th February 2016, 09:09
Because I was planning to quit my permie role and go back to Uni, but do some contracting on the side.

Because it's in the tax year, I was wondering if I could claim against my Self Assessment for this year, or whether if I had a new Ltd company up, I could do it as an expense.

(Up here for thinking mate, down there for dancing)


Academia 2016, here I come. :smokin

SueEllen
27th February 2016, 10:51
Academia 2016, here I come. :smokin

What are you studying? History of Art?

MrMarkyMark
27th February 2016, 11:01
What are you studying? History of Art?

The life and times of Walter Mitty.

Going to be as much use to his career, as a chocolate fire guard.

HTH.

mudskipper
27th February 2016, 11:01
What are you studying? History of Art?

And what's wrong with History of Art? :rolleyes:

Boo
27th February 2016, 11:26
So how do permies get sent on courses to learn new skills within incurring a BIK ?
If they are proprietors of their company they do incur a BIK.

Boo

northernladuk
27th February 2016, 12:03
If they are proprietors of their company they do incur a BIK.

Boo

To MSBob. Permie training is considered an investment to the company as the permies are assets of the company not just a tax breaks. You are letting the tax tail wag the dog thinking like that.

MrMarkyMark
27th February 2016, 12:34
To MSBob. Permie training is considered an investment to the company as the permies are assets of the company not just a tax breaks. You are letting the tax tail wag the dog thinking like that.

What and this means MF is an "asset", I have never heard him called that, before, on here? :eyes

NotAllThere
27th February 2016, 14:47
Funnily enough from 2016 Masters are tax deductible in Switzerland.

MrMarkyMark
27th February 2016, 17:08
Funnily enough from 2016 Masters are tax deductible in Switzerland.

Maybe, MF will take this golden opportunity to ferk off over there, then :D

You could meet up for a glass of champers with the old boy, he always has plenty, around, allegedly :eyes

MarillionFan
27th February 2016, 17:11
Maybe, MF will take this golden opportunity to ferk off over there, then :D

You could meet up for a glass of champers with the old boy, he always has plenty, around, allegedly :eyes


Oi, who pissed on your parade.


Another bad morning hey, did you find out the Thai lass you pulled last night has a bigger dick than you.

MrMarkyMark
27th February 2016, 17:13
Oi, who pissed on your parade.


Another bad morning hey, did you find out the Thai lass you pulled last night has a bigger dick than you.

Afternoon Squire....:D

SueEllen
28th February 2016, 00:25
And what's wrong with History of Art? :rolleyes:

Nothing.

All subjects are worth learning except if you are MF.

FatLazyContractor
28th February 2016, 07:57
What and this means MF is an "assh0le", I have always heard him called that, before, on here

FTFY