Questions and Answers
Training Courses & Qualifications
I have recently started to trade as a self-employed music tutor and in order to do this I had to gain a teaching qualification. Can I deduct the cost of the training course and exams in my first set of accounts even though the expense was incurred before I started trading?
When considering the cost of professional qualifications and courses, the Revenue will consider whether or not the claimant was learning new skills.
Where the training is undertaken merely to update the current expertise and skills of the individual, this will usually be regarded as revenue expenditure and as such deductible from the business income, provided it is incurred wholly and exclusively for the purpose of the trade.
Where the cost relates to new expertise or knowledge it is classed as capital expenditure and cannot be deducted from business income. It would appear from the query above that the teaching qualification would be classed as a new skill and therefore the expnse will not be allowable.
There are instances where the distinction is not clear and there have been recent court cases concerning this area. If you are uncertain whether or not you should be claiming the cost of training courses or qualifications, contact your local TaxAssist Accountant for further advice.
Date published 5 Dec 2012
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.