Training Courses & Qualifications

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.