Allowable Training Costs

Ellabobbin

Good Evening, Having spent a good while googling away, I'm hoping for some clarity. For a self employed person, training costs are allowable if the training updates existing knowledge, but not for new knowledge.. I have a new client, childminder in first year of business. She has attended various courses, some regulatory, some not.... My thinking is: Initial Course aimed at new childminders on 'how to run a childminding business' - not allowable Regulatory courses (eg first aid, child protection) - allowable Subsequent courses on improving her practices - allowable I'd really appreciate any input... Thank you

peaman

My general understanding would agree with everything you said in your post, this is how I have always claimed training costs in the past.

T.C.

I would say allowable if they are improving her knowledge of her business. I just wouldn't allow if the training was a completely different topic (ie a hairdresser doing a plumbing course).

peaman

As Ellabobbin stated, training/course fees for new knowledge is not allowable, but regulatory training/courses are allowable. I spoke to an inspector many years ago who confirmed this. HMRC's argument is that if you could claim for training for new knowledge then you could claim for university/college fees etc.

However, the practice I used to work in once claimed several thousand £'s expenses for a client in respect of training courses for new knowledge and he had an inspection and HMRC didn't query the training costs!

If the expense was not very high I would be tempted to claim the expense, if you make the client aware that if they ever had an inspection HMRC may decide to disallow it.