Training Costs – Are They Tax Deductible?
HM Revenue and Customs state that a deduction for training costs incurred by an employee will only be allowed if the employee concerned was directly employed on a training contract. The training has to be an intrinsic part of the contractual duties of the employment.
HM Revenue and Customs provide the following example:
- A trainee doctor employed as a registrar on a training contract is required, as a stated contractual duty of the employment, to attend various external training courses. As part of the duties of the employment there is a mandatory requirement to maintain a NHS national training number by attending a series of training courses and events. Failure to complete the course and obtain the qualification will mean that they cannot proceed to the next stage of their chosen profession.
Attendance at the training events is an intrinsic part of the employment and one of the duties of the employment. The costs of travel to the events, course fees and other associated costs met by the employee are deductible.
EIM32535 – Employment Income Manual – HMRC internal manual – GOV.UK (www.gov.uk)
HM Revenue and Customs will also ask you to demonstrate that failure to complete the training and obtain the qualification will mean that you will not be able to continue in employment with the employer in the role that would otherwise have been available to you after qualification.
We will be happy to help if you have any concerns.
Contact us today for a free consultation: jason@doctorstax.co.uk