Training costs before starting up as self employed

Training costs incurred before starting up a self employed business

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Client has worked in adult and child psychotherapy for a number of years as an employee of a charity.

She did an MA course in child psychotherapy between 2017 and 2019 in her own time and then left the employement with the charity in February 2019 to start up on her own her own as a counsellor (self employed person) in May 2019.

I understand training costs to update existing and current skills are allowable but training to acquire new skills is not.

Not sure where this fits in to the general guidance. She clearly had existing skills in childcare and psychotherapy before starting the course so could it be argued that as she already had and used these skills before going on the course then the Masters course was effectively just topping up these existing skills and providing the qualification needed to carry on her business?

 

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By jonharris999
08th Dec 2020 19:20

I think the question to ask is: if she had already been conducting the present trade in 2017, would the cost of the course have been allowable? In other words, would it have been improving her skills in the present trade, as opposed to enabling her to begin a new trade?

It sounds like you are saying that the present trade and the course are in the same skill/area; and therefore my vote would be, yes allowable.

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By frankfx
08th Dec 2020 19:47

"Taxation self funded work related training "

Read the treasury response, above.

I have not

Obviously there is a question that needs an answer.

But let's form a committee.

Winner.who ever kicks the can into the river. The mudlarks will uncover it next century. Treasure indeed.

Does the report offer any help?

Let us know.

Thank you

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paddle steamer
By DJKL
08th Dec 2020 20:41

"and providing the qualification needed to carry on her business?"

Does that not seal it as not allowable as it was needed to carry out/start the business. I might change view if say she had commenced her trade and government legislation changed such that she say needed the additional qualification to continue to trade.

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