Self employed accountant: claiming study fees through business?

Timmne

Hi all,

I'm an accountant full time and have three clients who I work for on a part time basis, doing accountancy & advisory services for, earning about £8k per year.

I need to start doing more CIMA exams and I was wondering, would other accountants/tax advisors on this board consider it an allowable expense?

The reason I question it is that it would actually improve my marketability on a self employed level and also the fees I could charge; it's just all on a part time level which makes me wonder....

Thoughts anyone please?

Pennywise

I'd say the basic question is whether you are a qualified accountant already with a different body. If you were, say, an ACA or ACCA, I'd say that costs to get another qualification of similar standing would be allowable, as it would be to enhance and further your existing qualification. If, however, you don't currently have a CCAB qualification, I'd say that it wouldn't be allowable as it is effectively changing your professional status from unqualified to qualified. I may well be barking up the wrong tree completely, but that's the kind of argument I use when it happens with my clients - i.e. new qualification, not allowable, but extending existing qualification is allowable - so far, tax inspectors have agreed when it comes up during an enquiry.

On a different note, have you checked that CIMA allow you to practice whilst you are a student member? As far as I know, ACA and ACCA don't allow their students or graduates to practice.

Timmne

No I practice as AAT - I've made sure none of my clients think I have an affiliation with CIMA for these reasons!

So do you think as AAT qualified I'd be able to claim the cost of tuition then?

A_little_stressed!!

I'm going to spy on this thread as this could come in very useful!

twig1_2

Timmne wrote: »

Hi all,

I'm an accountant full time and have three clients who I work for on a part time basis, doing accountancy & advisory services for, earning about £8k per year.

I need to start doing more CIMA exams and I was wondering, would other accountants/tax advisors on this board consider it an allowable expense?

The reason I question it is that it would actually improve my marketability on a self employed level and also the fees I could charge; it's just all on a part time level which makes me wonder....

Thoughts anyone please?

Why don't you check with the Inland revenue I always thought they were quite helpful or check on www.hmrc.gov.uk someone has asked the same sort of question on www.taxationweb.co.uk/forum/self-employed-allowable-business-expenses-against-tax-t23590.html . I think there reply is pretty encouraging for your question.

Timmne

Thanks a lot! Looks pretty good then.

I'll give HMRC a ring at some point; I agree they can be helpful but the advice one person gives on the phone can be much different to the rules a potential investigator is looking at! Do they confirm queries in writing? That may be my safety net!

jimmo

I am afraid you come up with an almost perfect description of what is not allowable. Take a look here.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm
Sorry.