Training Expenses

[philjeffs]

As my job necessitates me being abreast of all new commercial property regulations, health & safety legislation, etc I often need to undergo new training or refresher courses.

Is all training, as long as its associated with the business (ie, for personal skill development for a consultant) allowable as a business expense and VAT claimable please?

Phil

 

[Alpha]

Good Morning Phil

The answer is yes training is allowable and the VAT reclaimable providing it is due to a requirement of the business and is in the nature of updating your employees skills(and yours as an employee/owner).

Where the revenue tend to disaallow training is when it is for things such as MBA/ degrees i.e. the purpose of the training is actually for the development of the individual not the business. In this case it is a benefit in kind and taxable on the individual

A further case of contention is when training is undertaken to start the business eg someone trains as a therapist wit the intention of starting a new business. Again the revenue seek to disallow this as it is putting the person in a position to run the business and is not therefore a business expense.(Although it could legitimately be argued that this is capital expenditure).

Hope this helps

 

[philjeffs]

Thanks Alan, that's very helpful.

Phil

 

[vigo]

Thanks for that Alan, this information should help me later this year.