Training - does this count as a tax relief

lavyrnia

Hi

I'm sorting my tax return (self employed consultant)

I have a large cost expended on a qualification specifically related to my job area (a chartered institute is the awarding body).

Although it is not required for me to do my job - i.e. no legal requirement etc, it would certainly improve my chances of getting work and more money etc.

Is this allowed for tax deductions? If so, what about travel costs associated with attending?

It is only a distance course with 8 sessions to attend in person over the course of 1 year.

Thanks
D

chrismac1

Possibly not. The principle is whether this is improving your human capital - not allowable - or maintaining your "licence to operate" - operating cost, hence claimable against income.

Consider my electrician clients. Costs in becoming qualified = human capital - not allowable. Costs in maintaining NHBC Domestic Installer accreditation = allowable.

Once you have determined whether the training cost is allowable, the rest follows. So the costs incurred by the Domestic Installer in preparing for annual inspection are allowable.

Where it becomes trickier is when an already qualified person undertakes some form of training, the question is where does post qualification experience and continuing professional education end and enhancing your human capital begin? There have been a number of tax cases on this down the years, as usual some of them appear to mutually contradtict each other.

I am in no position to judge many times, for example in the case of a GP client how can I possibly judge whether advanced haematology is CPE or human capital enhancement? I see my role as providing the advice and the tax cases, and then if my client says the costs are operating costs my job is to make extensive notes on why that treatment has been adopted, ideally with at least one tax case precedent we are following.