Sole Trader Training Expenses
I hope someone can help me with this one!
My sister has been trading for a number of years as an environmental consultant, on a sole trader basis.
She already has a BSc and MSc in Environmental Science and now, during the last year (2010/11) she has embarked on an Envirpnmental Law Masters Degree, in order to broaden her service offering.
This is costing her around £3500 per year.
I was hoping that she could offset this against her income, but it would seem that, if it is "new knowledge" she cannot, as she is a sole trader.
My question is really this: Is there ANY way that this would be an allowable cost against the business? It seems rather unfair that she will potentially be earning shed-loads more income from having this qualification, and will be taxed on the income accordingly, but cannot claim a deduction for the cost of the training.
Could she capitalise the cost and then offset it against future earnings?
Or, how about if she were to become a Ltd Co now (she has been saying she wants to go Ltd)? Could she somehow carry forward these costs from last year to offset against company profits?
If anyone out there can help me I would appreciate it so much, I've only got a few weeks to sort it out for her!