Tax Relief on Self Funded Study

Hi

Hope someone can help. I work in a Managers position in Public Services, I've done all the training provided to me however none of it directly relates to Management and specifically the knowledge I need to do my job. Last September I enrolled on a CIPD course, L5 in Human Resource Mgt, one night a week at a cost of just under £2k, in addition CIPD membership and books. Am I able to get tax relief, I can't seem to find the answer anywhere and after 32 minutes in a queue to HMRC yesterday I gave up. In the meantime if anyone can help I'd apprechiate it.

Thanks,

Rachel

Comments

  • persa
    persa Posts: 735 Forumite
    Hi

    Hope someone can help. I work in a Managers position in Public Services, I've done all the training provided to me however none of it directly relates to Management and specifically the knowledge I need to do my job. Last September I enrolled on a CIPD course, L5 in Human Resource Mgt, one night a week at a cost of just under £2k, in addition CIPD membership and books. Am I able to get tax relief, I can't seem to find the answer anywhere and after 32 minutes in a queue to HMRC yesterday I gave up. In the meantime if anyone can help I'd apprechiate it.

    Thanks,

    Rachel

    Short answer is no.

    Your employer could claim the cost as a deductible expense, but you can't. When you do finally qualify though, you'll get tax relief on your annual subscriptions.

    Sorry to be the bearer of bad news!
  • Oh that's a shame, my mum and dad's accountant suggested it to me so I thought I might be on to a winner. Well at least I can get tax relief on CIPD membership once I qualify, that's something! How would I do this?
  • persa
    persa Posts: 735 Forumite
    edited 14 March 2012 at 9:18AM
    Oh that's a shame, my mum and dad's accountant suggested it to me so I thought I might be on to a winner. Well at least I can get tax relief on CIPD membership once I qualify, that's something! How would I do this?

    A simple letter to HMRC - they'll adjust your tax code accordingly.

    There's a list of professional subs eligible for membership kicking about somewhere [Edit: here you are. http://www.hmrc.gov.uk/list3/list3-p.pdf]

    The cost of initial training is always ineligible for relief, except where you're training your own employees. There's a reason why most people try to find corporate sponsorship!
  • VfM4meplse
    VfM4meplse Posts: 34,269 Forumite
    10,000 Posts Combo Breaker I've been Money Tipped!
    persa wrote: »
    Short answer is no
    But if the OP was self-employed, the answer would be yes?
    Value-for-money-for-me-puhleeze!

    "No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio

    Hope is not a strategy :D...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!
  • rachelandgromit
    rachelandgromit Posts: 826 Forumite
    edited 14 March 2012 at 9:21AM
    Thanks so much! You have saved me a phonecall.

    PS - I'm not self employed, I work in the civil service.
  • persa
    persa Posts: 735 Forumite
    VfM4meplse wrote: »
    But if the OP was self-employed, the answer would be yes?

    No. Update training deductible, initial training to learn new skill, no.
  • persa
    persa Posts: 735 Forumite
    Thanks so much! You have saved me a phonecall.

    Not at all. I know how long the queues are on the public helplines.

    PS Good luck. Professional training is such a long hard slog, but it will be worth it in the end! :D
  • heretolearn_2
    heretolearn_2 Posts: 3,565 Forumite
    your mum and dad need a new 'accountant'.
    Cash not ash from January 2nd 2011: £2565.:j

    OU student: A103 , A215 , A316 all done. Currently A230 all leading to an English Literature degree.

    Any advice given is as an individual, not as a representative of my firm.
  • persa
    persa Posts: 735 Forumite
    your mum and dad need a new 'accountant'.

    Agreed. ;)
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    Just to be clear...

    I don't know what HMRC's definition of 'qualified' is. But this might help the OP:
    * The L5 qual will give you a qualification, but not professional membership
    * To get professional membership you need to 'upgrade' to Associate membership after you complete your qual


    You pay your subscription regardless of whether or not you are a professional member with the CIPD, and doing a qualification doesn't give you professional membership either. (Ie, you're paying to be a student now, and you'll still be a student when you finish - until you go through the upgrade process.)

    So, I would argue that your current £130 subscription is either eligible for tax relief from now (before you 'qualify') , or it won't be eligible until you upgrade.

    My point is that doing the qualification itself makes no difference from a CIPD perspective in terms of being 'qualified'. So I'd check out how HMRC see it and try for the tax relief with your company now. :)

    HTH
    KiKi
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
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