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My wife set up as a self employed dance teacher recently, she spent a lot of money training to get the necessary qualifications which I imagine should be fine to treat as a tax deductable expense, however, some of these costs relate to a prior tax year - can they also be deducted in the current year?
Hi.I'm afraid that the costs are probably not tax deductible. Unless expenses are incurred wholly and exclusively for business purposes, they are not allowable expenses. The costs of acquiring a new skill are not tax deductible as they are not a cost related to the function of the business itself. Fees paid to update existing skills are deductible expenditure.I know many people claim such expenditure and some get away with it, not that they necessarily know they should not be claiming but it is something the tax office looks out for.Take a look here and here for more information on this topic.I'm sorry this is not the answer you wanted to read. Let me know if you have any further questions.
Hi Tonytax, apologies for delay in reply.
Thanks for response above there was a second part to my question which I would be appreciate a response too, namely if you forget to include an expense in a tax year can you include it in the following years return?