Tax question

Glynis

I am going to pay for a revision course for my ACCA studies and have been told I will be able to get a tax relief on this course.
How do I go about getting this relief?

A-Vic

unless your self employed no unfortunatley

Glynis

Ok thank you. Seems a bit unfair.

NeilH

Hi

Courses such as CPD courses or (in other professions) licence or registration renewal courses are tax deductable as they are considered part of performing work. However, courses that are used to gain brand new skills and knowledge or where the candidate is retraining aren't deductable.

Conversely, if they are funded by an employer for an employee then the employer may deduct them and the employee is not perceived to be receiving a taxable benefit.

Who is the course with, how are you doing the "main" study?

Neil

A-Vic

as i understood it if you receive money for courses by your employer this is not a taxable beneifit but glynis has deceided to fund her ACCA studies herself she is employed and not registered self employed so can not receive a taxble beneifit for it. However wouldn't she be entitled to a student loan?

NeilH

Hi

As I understand it, studying for a professional course is not tax deductable even if you are self employed. Gaining brand new professional skills that go beyond CPD purposes aren't deductable. E.g. a plumber who wanted to retrain as a carpenter wouldn't be able to deduct the cost of the carpentry training. However, keeping their plumbing skills up-to-date or renewing their Gas Safe registration would be deductable.

Student loans are only available to students on full-time higher education courses. However, career development loans may be available.

Neil

A-Vic

NeilH wrote: »

Hi

As I understand it, studying for a professional course is not tax deductable even if you are self employed. Gaining brand new professional skills that go beyond CPD purposes aren't deductable. E.g. a plumber who wanted to retrain as a carpenter wouldn't be able to deduct the cost of the carpentry training. However, keeping their plumbing skills up-to-date or renewing their Gas Safe registration would be deductable.

Student loans are only available to students on full-time higher education courses. However, career development loans may be available.

Neil

Thats was what i was trying to think of a career development loan - as far as glynis is concerned because she is training to be an accountant and would be seen as both CPD and gaining brand new professional skills (be interesting to know if you could reclaim)

NeilH

A-Vic wrote: »

...be interesting to know if you could reclaim)

Unfortunately you can't, I contacted HMRC regarding this when I funded some of my CIMA study.

Neil

A-Vic

Did you try for the career development loan (sorry just interesting to see whats avaliable for me)

NeilH

Hi

I didn't try for a career devlopment loan, so im not sure what the criteria is. A Google should find the info.

Neil

Gem7321

This is an interesting thread. Do you know if me studying ATT would be an allowable expense? I've been looking at it as CPD/enhancing my current tax knowledge and not brand new.

NeilH

Gem7321 wrote: »

This is an interesting thread. Do you know if me studying ATT would be an allowable expense? I've been looking at it as CPD/enhancing my current tax knowledge and not brand new.

Hi

I think the HMRC's (conservative view) would probably say no. However, it would probably depend on how they viewd ATT - continuation of your current standing or enetering a new area of your livelyhood.

Neil

Dean

Hi Gem

This may help you; firstly I'd agree with Neil's statements with regard to courses being allowable/not allowable.

I have claimed the ATT as being allowable. For the deduction and clarity, I am a self-employed MiP.

My rational behind claiming the deduction was because I had already done both tax modules at AAT (BTC & PTC) and I started the ATT in it's new "modular" system. The modular system means you can complete (update) the areas that most interest you without the NEED to complete the course and fully qualify. My intention was to do the papers that most helped me in practice - I just happen to do enough to qualify. Should I get an enquiry I'll let you know the outcome!

If anyone wants any help with a carrer development loan I've been down that route as well...

Monsoon

Dean wrote: »

I have claimed the ATT as being allowable. For the deduction and clarity, I am a self-employed MiP.

My rational behind claiming the deduction was because I had already done both tax modules at AAT (BTC & PTC) and I started the ATT in it's new "modular" system. The modular system means you can complete (update) the areas that most interest you without the NEED to complete the course and fully qualify. My intention was to do the papers that most helped me in practice - I just happen to do enough to qualify. Should I get an enquiry I'll let you know the outcome!

I've done the same, same circumstances. If I was taking the IHT module at ATT (I'm not!) then I think that wouldn't be allowable as I didn't do it at AAT and know nothing more than the very basics, so I'd be learning a new skill. Taking the business tax papers at ATT is CPD and consolidating things I already know and work with day-to-day. Now all I need to do is find time to actually study... At this rate I'm going to have to re-take the first module I passed 18 months ago...

Gem7321

I too did both the tax units at AAT, I just want to expand what I already know so I think I'm OK I am planning to sit higher skills business tax along with the compulsory units

Dean

Gem, this is where you need to be careful!

Your plan/intention is to do them all at this stage. So you are planning to add at TAX qualification to your ACCOUNTING qualification. Can you see why intention is so important in this context? It's a bit like the above plumber/carpenter scenario.

Gem7321

I see what you mean. So would it be enough to leave plenty of time between each unit or should I avoid one of the units so I never actually qualify?

But I'd rather pay the extra tax than not qualify tbh!

Dean

Ha! Now you're asking me questions!

I'm saying your intention to do whatever modules are suitable for you to keep your existing knowledge up to date and to perform your duties as an MiP (which I think you went on to do?).

Each module you complete is essentially a certificate of competency valid for 3 years, after which must be renewed.

Should you enjoy "maintaining your knowledge" so much you may happen to do four modules (one after the other if need be) and not have to renew them after 3 years because you will have taken up full membership.

Your intention isn’t to qualify. It just so happen you end up doing, provided you pass etc. etc.

Not that I’m putting words in your mouth of course!!

Actually, now that CTA is modular.... it might be worth re-visiting!

Dean

Gem7321 wrote: »

But I'd rather pay the extra tax than not qualify tbh!

Oh absolutely. I'm just trying to add weight to your claim for deduction. Also, as this is a slight grey area I'm sure the Revenue would like to make a spectacle of a Tax Adviser.

Gem7321

Fab thank you!