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Sam
Sam, Accountant
Category: Tax
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Hello, Im self employed and currently studying and paying

Resolved Question:

Hello,
Im self employed and currently studying and paying for a qualification. I wondered if I could use the cost of my studies to offset against paying tax.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, I am Sam and I am one of the Uk tax experts here on Just Answer.
Its highly unlikely as if this will allow you to obtain a new qualification, then this is a personal cost, not business related, but If its to update existing skills, or as a result of professional development on an existing qualification then its deemed to be a business cost.
Perhaps you could advise what you self employment trade is, and what this qualification will lead to
Thanks
Sam
Customer: replied 2 years ago.

Thank you for getting back to me.

Im a part qualified cima management accountant and employed by a service organisation.

I mentioned self employed because I would consider it if it helps with savings.

Is there anyway I could recover some of the cost of studying? It is very expensive.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
If you are employed, then this is not an allowable expense either way, as if it was deemed to be relevant to your employment, then the employer should (would) make good this amount for you, and it would then just be HMRC to consider whether an allowable tax free payment made by the employer.
I am afraid there is no way you can recover this cost, as this may enhance your employment prospects but clearly is a qualification of choice rather than necessity within your employment position.
I wish the news were better.
I have added a link here from the employment income manual that details when expenses would be allowable in employment with training and education.
http://www.hmrc.gov.uk/manuals/eimanual/eim32525.htm
As you can see the occasions when HMRC allow these costs to be covered as an expense, or allowed as tax free, when the employer makes good the cost, is rare.
If you feel you do in fact fulfil the criteria laid out by HMRC, then ask your employer to provide you with a letter to endorse this, and write into HMRC with a request for the costs of the training, books and travel to attend to be considered as an expense allowable against your employment income.
let me know if you wish me to expand on any aspects of my response, in the meantime, it would be appreciated, if you could rate/accept the answer, as this ensures that Just Answer credit me for my time.
Thanks
Sam
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