Is training allowed as a expense through limited company ?

**malvolio** · 23 April 2013, 12:09

Originally posted by network View Post

Hi

Just wondering is "training allowed as a expense through limited company" because my accountant seems to think this should not be additional skill. He was asking if i didnt do this training ,would i still be able to do my job ? The answer is yes and no because i need this qualification to do my job better and would help me get new contracts. (He thinks HMRC does not like the idea of gaining skill for my own benefit)

This is a grey area. can anyone clarifiy if training is allowed if i am doing a course in my area of expertise ?

Thanks

Been asked a million times. It's not grey in the slightest. It's only allowable if it is directly related to your fee-earning work. Nothing else. If you write .NET for a living, training in .NET and immediately related technology is all that's allowable.

Anything else - new technologies, business admin, sales, whatever - is expanding your skillset and out of scope. There is a detailed explanation onthe HMRC website somewhere.

**cojak** · 23 April 2013, 12:11

My understanding is:

'HMRC does not like the idea of gaining a new skill for my own benefit'

I was already performing a Business Analyst role when I obtained BA training and certification. I'm not allowed to train as a photographer as that is not what I currently specialise in.

**Bunk** · 23 April 2013, 12:11

Originally posted by network View Post

Hi

Just wondering is "training allowed as a expense through limited company" because my accountant seems to think this should not be additional skill. He was asking if i didnt do this training ,would i still be able to do my job ? The answer is yes and no because i need this qualification to do my job better and would help me get new contracts. (He thinks HMRC does not like the idea of gaining skill for my own benefit)

This is a grey area. can anyone clarifiy if training is allowed if i am doing a course in my area of expertise ?

Thanks

It sounds like your accountant is correct. As I understand it, training is allowed if it's necessary to perform your existing contract, not if it's to enable you to get other contracts or retrain in a different area. If you can do you current contract without it, then I would say it's not allowed.

**Epiphone** · 23 April 2013, 12:17

How about if as Director of YourCo you deice you want to spend some profit on a training course for your one and only emplyee. OK, you can't claim it against CT but if your business wants to spend its money on training is that OK?

**network** · 23 April 2013, 12:21

Originally posted by Bunk View Post

It sounds like your accountant is correct. As I understand it, training is allowed if it's necessary to perform your existing contract, not if it's to enable you to get other contracts or retrain in a different area. If you can do you current contract without it, then I would say it's not allowed.

Yes but without those materials / exam i cant do my job better. For instance, if i am doing a job in .net and buy materials to design in .net (which i am doing in my current job) then is this an allowable expense ? because i need this to perform my job better . i am not doing any course outside my area isnt it ?

**stek** · 23 April 2013, 12:37

Is training allowed as a expense through limited company ?

Originally posted by network View Post

Yes but without those materials / exam i cant do my job better. For instance, if i am doing a job in .net and buy materials to design in .net (which i am doing in my current job) then is this an allowable expense ? because i need this to perform my job better . i am not doing any course outside my area isnt it ?

Ok so why do you need training to do something you are already doing? Did you blag to get the role?

Does this training course you are interested in invoke flying to India as well?

**network** · 23 April 2013, 12:45

Originally posted by stek View Post

Ok so why do you need training to do something you are already doing? Did you blag to get the role?

Does this training course you are interested in invoke flying to India as well?

I didnt blag Stek. so you mean to say that if you do something you are an expert, is it ? wont you have the attitude to do things better ?

Does this training course you are interested in invoke flying to India as well ? Thats none of your business - if you want to help ,then post your comments, else dont waste everyone time reading your comment !!

**Jog On** · 23 April 2013, 12:52

I did all my Prince 2, ITIL, BA, Agile training through my LTD in between contracts. Accountant didn't have any issue with it.

I also sell trading courses as an affiliate through my websites and I've bought all of them to review them thoroughly. This is genuine plan B entrepreneurial activity through same LTD which is directly funded from contracting. Accountant is fine with this as well.

I think pigeon holing "directly applicable" skills and training to be able to do your "job" is the kind of thinking that gives LTD company contractors a hard time with hector.

Are you in business? Do you need to update and learn skills to maintain and grow your business? If so that's what a LTD co structure should help you achieve.

**northernladuk** · 23 April 2013, 13:03

Remember of course you will still be paying 80% of the training cost out of your own pocket in the end. Just because it is going through the company doesn't make it free as some people seem to forget.

Also it is down to your attitude to risk. You could just bang it through and be ready to argue it in an investigation. Where I wouldn't condone breaking the rules there is a grey area created by people even though the rules are black and white. The guy investigating may just assume tech cert for a tech contractor isn't worth looking in to and you are away. A Masters Degree course for a .NET contractor will attract attention... so up to you and whether you want to put it through and are prepared to fight it later.

Is training allowed as a expense through limited company ?