Learning platform subscription as business expense

Does subscription to learning platform Codecademy qualify as tax business expense for IT company?

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I've been looking at the rules around the eligibility or not of training as a tax deductible business expense.  I can understand that work related training is only eligible as a business expense if it relates to maintaining or improving existing skills, not for entirely new skills.

I'm considering subscribing to Codecademy Pro which provides multiple online courses relating to multiple different aspects of coding.  Where my current skills are self-taught, this would be about enhancing these and adding to my capability, specifically in the fields of data handling.  Would such a subscription therefore be eligible for an IT company to pay for directors/enmployees and claim tax deduction as a valid business expense?

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By tom123
15th Nov 2020 19:39

Do you definitely have a limited company, as opposed to a sole trade business?

The rules differ.

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Replying to tom123:
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By yorkshirepudding
15th Nov 2020 19:42

tom123 wrote:

Do you definitely have a limited company, as opposed to a sole trade business?

The rules differ.

Yes, limited company

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By OldParkAcct
16th Nov 2020 08:54

The company can pay for any type training for employees and claim a tax deduction. There is no taxable benefit on the employee as long as it is work related.

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Replying to OldParkAcct:
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By Tax Dragon
16th Nov 2020 09:09

OldParkAcct wrote:

There is no taxable benefit on the employee as long as it is work related.

More precisely, there is an exemption from the BIK that would otherwise arise. The exemption has various conditions. "Work related" is a convenient shorthand for the conditions, but one needs to apply the legislative definition of such terms, not one's own.

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By tonycourt
16th Nov 2020 17:42

To augment TD's post the statutory definition of work related is;

251 Meaning of “work-related training”
(1) In this Chapter “work-related training”, in relation to an employee, means a training course or other activity designed to impart, instil, improve or reinforce any knowledge, skills or personal qualities which—

(a) are likely to prove useful to the employee when performing the duties of the employment or a related employment, or

(b) will qualify or better qualify the employee—

(i) to perform those duties, or

(ii) to participate in any charitable or voluntary activities that are available to be performed in association with the employment or a related employment.

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By yorkshirepudding
16th Nov 2020 18:38

Thank you for the responses. I think that a subscription to a service providing access to multiple courses that would assist in the performance of duties and enable me to better perform existing duties should be ok. Would it be wise to do a mini training needs assessment for each course I do so can demonstrate that I've considered how such a course would benefit the work I do if it's ever questioned?

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