Self Employed training expenses

weeg

Hi,

I'm doing my first self employed tax return, and struggling to find the answer to a question about expenses.

I've set up a personal concierge business (I help busy people run their lives) and as such I joined the relevent professional body. I understand that as it's not on the HMRC list I can't claim the fee as an expense. But what about attending their conference? It was a purely work related expense (and extremely useful) can I claim it?

What about textbooks- are they allowable?

And my last question, which googling has failed me. When I decided to try going self employed I was on Job seekers allowance. The DWP put me on a training for work scheme, so I got a P45 from the DWP, but not one relating to the living allowance I was paid on the scheme (same amount as the dole plus £10 per week premium). Was that allowance taxable income? I assume it was, but can't find confirmation anywhere.

Elaine_Wilson

I see no problem with claiming the professional subscription unless there is a substantial non-business benefit included in the price. The list on the HMRC to which you are probably referring relates to employees who strictly would not be able to claim relief on those fees.

Again the conference costs are, on the face of it, allowable. Again, make sure that all the costs relate to the business. If the conference was for a few days and included functions for guests or spouses then you would have to calculate the business percentage of the cost.

Textbooks - probably. The general rule regarding any training is that you can claim the costs related to keeping updated but the costs of learning totally new skills would not normally be allowed (they are considered capital costs).

I don't know anything about the payments in your last question - sorry.

weeg

Don't say sorry - you know a lot more than I do! Thankyou.

That's incredibly helpful. I'll claim for the membership and conference. It was strictly business. By a weird twist of fate the first time they held a conference outside of the USA, they chose (a really dodgy part of) my home town. I won't claim for the dinner part though.

Textbook was actually on website design - I wanted to be able to maintain my own site, so I guess that's a capital cost. Which is odd when you think about it, as if I paid someone else to build it it would be more expensive but deductible.

Elaine_Wilson

At the risk of causing more confusion I would claim for that textbook. I would treat it as part of the cost of the website and thus probably comes under promotion costs.

When I wrote about learning a new skill I meant a skill that would be sold on. So, if the book had been about acquiring the skills to provide concierge services then HMRC would not class this as an expense of running the business but a cost of putting you in the position to be able to start the business.

Also, don't be too hard on yourself re the conference. They do not like anyone effectively taking a holiday in an exotic location with just a token lecture or two to disguise it as a business trip. But if this really is all business as you say, and you have to stay overnight, then a reasonable evening meal will be an acceptable expense. They will even accept a glass or two of wine.

weeg

Ok. Will include the textbook.

Have be re-reading paperwork. The allowance for the training isn't taxable income. I have just hit the tipping point of taxable income being less than my tax allowance. And I still haven't finished my mileage deductions for mystery shopping.