If a marketing consultant undertakes a university degree in psychology (BSc Psychology and Counselling) where marketing is listed as one of potential careers for graduates, can she claim the cost of it via her Ltd company which provides marketing and PR consulting?
I came across that allowable expenditure needs to pass two tests:
1. Wholly and exclusively for the purpose of the business (which it’s not 100%) so can they claim an arbitrary %?
2. It needs to be building on existing skills and not acquiring new ones, so not sure if that would pass this test at all?
Also IF they end up claiming it all or a %, does it become a P11D item?
Many thanks!
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"can she claim the cost of it via her Ltd company which provides marketing and PR consulting"
In cases such as these it's really only fair to suggest that the, marketing consultant, takes advice from her accountant.
I think you have pretty much answered your own question, but I appreciate it is sometimes difficult giving bad news to a client.
Thanks! In the past I worked in companies where various courses (sometimes not very related to co's activities, or sending ee's to acquire new skills) were reimbursed to employees. She will definitely wonder why she cannot do the same...
Your 1 and 2 do not apply to a limited company situation.
The reimbursement is remuneration, and as long as the total remuneration is not excessive, then it will satisfy the W+E test. Educating employees isn't capital either.
The reimbursement might be taxable a s pay for the individual, or it might qualify fro the work-related training exemption. And that's where you need proper advice.
Thank you! but the course would give her a BSc title and I found here that this is disallowable? (Last paragraph)
What's your view on that? She's a Director and sole employee of the Ltd.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim35660
Why not? It is about claiming cost for training which gives you recognisable qualification/title?
You are reading the manual for unincorporated businesses but your question is about the employee of a limited company. It should not require four posts to point this out to you.
Thank you - if the first post had that info the subsequent ones would indeed not be necessary.
Have a look here instead
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim01200