Claiming MBA fees from Limited company

[pangeakiller]

Hello everyone,

I am new to this forum. I am a contractor with a limited company. Before setting up the limited company, I had joined an parttime executive MBA program and paid the first year fees out of my pocket. I would like to find out if I can pay the second year fees from my limited company somehow legally (sponsorship or as an expense)?

Thanks in advance.

[prozak]

recently dealt with on this forum.

short answer. very unlikely.

[TheFaQQer]

Selected results from the first page of Google:

http://forums.contractoruk.com/accou...dying-mba.html
http://forums.contractoruk.com/accou...-mba-fees.html
http://forums.contractoruk.com/accou...enses-mba.html
http://forums.contractoruk.com/accou...-mba-fees.html
http://forums.contractoruk.com/accou...a-expense.html
http://forums.contractoruk.com/accou...ition-fee.html
http://forums.contractoruk.com/gener...onsor-mba.html

[russell]

Should be no problem as its training, I am doing OU at the moment and put it through Ltd.

[TheFaQQer]

Should be no problem as its training, I am doing OU at the moment and put it through Ltd.

HMRC specifically mention MBA as not being an allowable expense - linky.

You should therefore allow proprietors a deduction for expenditure that merely updates existing expertise or knowledge but disallow any expenditure that provides new expertise or knowledge (particularly where it brings into existence a recognised qualification like an Master of Business Administration).

I'd be astounded if an OU degree didn't fall foul of that rule, either.

[russell]

HMRC specifically mention MBA as not being an allowable expense - linky.



I'd be astounded if an OU degree didn't fall foul of that rule, either.

That is shocking, I thought training was a valid business expense. The issue with OU degrees etc is that you do modules each year, and build up to a degree, so they can't be sure that is what your are studying for.

[TheFaQQer]

That is shocking, I thought training was a valid business expense. The issue with OU degrees etc is that you do modules each year, and build up to a degree, so they can't be sure that is what your are studying for.

Unless "they" ask what the training was for, of course. And as long as you don't get any qualification from it.

Which might defeat the object of doing the course somewhat.

[russell]

Unless "they" ask what the training was for, of course. And as long as you don't get any qualification from it.

Which might defeat the object of doing the course somewhat.

But you could pay for the final module personally, then gaining your qualification! A cunning plan me thinks.

[TheFaQQer]

But you could pay for the final module personally, then gaining your qualification! A cunning plan me thinks.

You could pay for the final module through the company and hope that there isn't an inquiry. That would be as likely to work as paying for one module personally, with the additional benefit of not having to pay for anything personally.

Genius idea.

[malvolio]

That is shocking, I thought training was a valid business expense. The issue with OU degrees etc is that you do modules each year, and build up to a degree, so they can't be sure that is what your are studying for.

Training of any kind is only claimable if itis directly aligned to your main rade; coders can learn new program languages but PMs can't. Which is fairly obvious if you think about it: YourCo is in business to do "something" and can only spend money doing that "something", it's just another application ofthte "wholly and exclusively" rules. And before you ask, additional skills such as accoutning, MBAs and markteting, and other things that "might make you more marketable", are out of scope as well.