Are training costs tax deductible for self employed

When you are self employed it can be confusing knowing what you can and can’t claim against your taxes and understanding which training courses are tax allowable are no exception.  HMRC sets out the UK rules dictating whether training costs are tax deductible when you are self employed and the treatment depends whether you are training for new skills or merely updating your expertise or knowledge.

Training for New Skills are NOT Tax Allowable

If you have attended a training course to learn about a new set of skills, then these costs would not be tax allowable.

For example, if you are a french tutor and embark on a new course to learn Spanish so you can offer a new course to teach Spanish, then the cost of this course would bot be tax deductible.

Updating Your Expertise or Knowledge are Tax Allowable

If you attend a course to keep your expertise up to date, then this cost would be tax deductible.

For example if you are a self employed tax advisor and attended a course to stay up to date with changes in the tax rules due to a change in tax year, then this cost would be tax allowable.

It is important to note that these rules relate to Self Employed individuals.  Different rules apply to Directors of Limited Companies and those employed in full time jobs.

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.