Paying for training through limited company

[DNS1]

Hi chaps,

I'm very new to the business side of the game, but I'm going to be setting up as a limited company in the next couple of months.

I'm going to be the sole shareholder and will deposit a lump sum to fund the start up.

At some point I'm going to go back to college and do my 2392 and 2391 in the next 6 months. Is this something that the company can pay for and claim back tax on?

Cheers!

 

[Octopus]

Ask your accountant. HMRC will say no.

 

[Robert Turnbull]

I'm not 100% on this but when I was self employed training was 100% tax deductible so you essentially got the money back for the course

 

[loop3]

Stay as a sole trader until you earn a given amount. You can still claim back on training costs. Speak to your accountant. Rebate for sole trader, 300-350 for limited 900+ per year

 

[loop3]

Accountant costs., that is

 

[Octopus]

I'm not 100% on this but when I was self employed training was 100% tax deductible so you essentially got the money back for the course

Interesting spin on this. Training to improve your employability is NOT, I repeat NOT tax deductable. Training to maintain a previous qualification is, so a 17th Ed update is.

Which is total madness and is probably why most employers skimp on training.

 

[DNS1]

Cheers for the quick replies chaps, what a pain in the arse!

 

[Robert Turnbull]

Oh when I did my 17th I'm sure my accountant said it was 100% deductible.

I'm by no means an accountant I just remember having a lovely rebate that year

 

[DJ Ovengloves]

For Limited companies training is treated like any other deductible business expense; it must be ‘wholly, necessarily and exclusively’ in the performance of duties and related to income. If the training is not linked to existing income, then it cannot be treated as a deductible expense through the limited company. I would suggest that someone working as an electrician taking electrical courses would be fine, however, as Murdoch says, HMRC may have a different view.

Interesting spin on this. Training to improve your employability is NOT, I repeat NOT tax deductable. Training to maintain a previous qualification is, so a 17th Ed update is.

Which is total madness and is probably why most employers skimp on training.

 

[D Skelton]

I can confirm that you are 100% correct Murdoch

 

[odawire]

I can confirm that you are 100% correct Murdoch

Surely that's true for self employed/sole trader, but as a company you're not improving you employability, I'd class it as work based training which surely must be 100% TD. As the others I'm not an accountant so may be totally wrong but I've had a limited company for a few years now (the only sensible option in my opinion) and anything like this always gets 100% deducted.

 

[odawire]

Stay as a sole trader until you earn a given amount. You can still claim back on training costs. Speak to your accountant. Rebate for sole trader, 300-350 for limited 900+ per year

Just out of interest, why do you suggest this?

 

[D Skelton]

Surely that's true for self employed/sole trader, but as a company you're not improving you employability, I'd class it as work based training which surely must be 100% TD. As the others I'm not an accountant so may be totally wrong but I've had a limited company for a few years now (the only sensible option in my opinion) and anything like this always gets 100% deducted.

And you'd get shafted if you were ever audited!

It doesn't matter whether you're a ltd co or sole trader. The only training that is tax deductable is that which allows you or your staff to continue their trade. I am paying for two of my apprentices driving lessons at the moment and I can't claim a dime of it as tax deductible which is annoying, however the way I see it is that it will benefit me and my business in the long run.

There are some things you just gotta take the hit on and move on

 

[robbalaar86]

You are a top boss paying for driving lessons mate. Any jobs going

 

[D Skelton]

You are a top boss paying for driving lessons mate. Any jobs going

Haha, I'm not as 'top' as you think. If the driving instructor wasn't one of my best mates then I wouldn't be