Claiming back training expenses

[Dazamataz]

I am a sole trader self employed electrician and am not VAT registered.
I have recently done a 5 day course to gain the City & Guilds 2382-100 Level 3 Certificate in the Requirements for Electrical Installations:BS7671:2008.
Can I claim back the total cost of the course, or at least the VAT?

 

[colindavison]

Hi,

As your training covers you to gain a qualification opposed to general updating skills, this will not be permitted as an allowable deduction on your tax return.

Sorry, there are of course schemes to cover some of this. It is not gonig to be public knowledge.

Colin Davison
Managing Partner
Cranleys Partnership LLP
01256 830000

 

[Dazamataz]

Hi Colin
Thanks for your reply.
The course that I did was purely to make sure that I am conversant to the latest eddition of the electrical regulations.
Does this change things?

 

[Billmccallum]

HMRC says...
"Business expenditure

You can get tax relief for your business expenditure as long as it's not:

• capital expenditure
• specifically non-allowable - for example entertaining expenditure

But to be allowable expenditure, it must be 'wholly and exclusively' for carrying on and earning the profits of your business. This means that your sole purpose for the expenditure must be a business purpose.
You can get some private benefit from the expenditure and still get tax relief for the amount spent for your business, as long as either:

• the private benefit was incidental and not the reason for the expenditure
• you can clearly identify and separate the expenditure between business and private purposes

You can deduct the full amount of your allowable business expenditure from your business income to work out your taxable profits.
This guide provides further information on the difference between 'allowable and non-allowable expenses' below."

source: http://www.hmrc.gov.uk/incometax/relief-self-emp.htm#1

I would argue that certification (I would put it down as certification - NOT TRAINING) is a business requirement and should be an allowable expense.