Anonymous
Share this content
0
496

CPD costs

CPD costs

Where an employee personally incurs CPD costs which are not paid for or reinbursed by their employer, are those costs an allowable expense where they have to incur the cost under their contract?

Replies

Please login or register to join the discussion.

avatar
By Rweaver
27th Mar 2019 10:19

Under s.336, to be allowable, the employee must be obliged to incur the cost and pay it as holder of the employment. Additionally, the amount must be incurred wholly, exclusively and necessarily in the performance of the duties of the employment.

CPD costs are not incurred in the performance of the duties of employment. They put the employee in a position to undertake the employment duties. As such, they are not allowable.

Thanks (2)
to Rweaver
27th Mar 2019 11:07

If CPD is contractually a part of the duties of employment, the costs may be allowable.

Thanks (0)
avatar
By Rweaver
to SteLacca
27th Mar 2019 11:10

Would CRC v Decadt not say otherwise?

Thanks (0)
avatar
By Rweaver
to SteLacca
27th Mar 2019 11:17

EIM32530:

Similarly, no deduction is due for the costs of continuing professional education (CPE). That is so even if participation in such activities is compulsory, and failure to do so may lead to the employee losing his or her professional qualifications, and/or their job. CPE is not a duty of the employment for the purpose of section 336. The Special Commissioners confirmed this point in Consultant Psychiatrist v CIR (SpC557), which was about CPE expenses incurred by a consultant employed by a NHS Trust. Note that Special Commissioners’ decisions do not set a binding precedent, but they do indicate the approach that a tribunal properly directed in the relevant law is likely to take to the point at issue. Another case in the same line is Parikh v Sleeman (63TC75), which concerned a doctor who attended seminars. Once again, a deduction was refused.

Thanks (0)
27th Mar 2019 10:43

Surely it's in the employer's interest to have his staff adequately trained ?

Why is the employee paying ? Why is he working for this tightwad employer ?

Thanks (0)
avatar
By TPAims
to lionofludesch
27th Mar 2019 10:48

Valid questions - but they don’t answer the question of allowability for tax.

Thanks (0)
By DJKL
to TPAims
27th Mar 2019 11:07

Surely already answered for you in the previous answer on the thread.

There is possibly scope for salary sacrifice with the existing arrangement.

Thanks (0)
to TPAims
27th Mar 2019 11:52

Which has already been answered.

I provide a suggestion for amelioration.

Thanks (0)
avatar
By TPAims
to lionofludesch
02nd Apr 2019 09:05

For the avoidance of doubt, you both concur that no deduction is due in the present circumstances?

Thanks (0)
Share this content