TAX RELIEF ON TRAINING COSTS FOR LIMITED COMPANIES

TAX RELIEF ON TRAINING COSTS FOR LIMITED COMPANIES


Your Tax Shop based in Ashton under Lyne can confirm that tax relief is usually available on training costs for employees who receive work-related training.

 

When a limited company provides work related training to any employees with the purpose of helping the individuals to better perform their work duties within that trade or to advance the companies trade, an allowable deduction will be able to be made.

 

Under ITEPA 2003 all employees are subject to income tax on training as it is classed as a benefit unless it can be classed a work-related training.

The definition of work-related training is any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which:

  • are, or are likely to prove, useful to the employee when performing his/her duties or
  • will qualify or better qualify the employee to undertake their employment, or to participate in charitable or voluntary activities arising through their employment.

 

For training courses that do not meet the above definition such as a limited company sending its financial controller on a horse riding course Your Tax Shop in Tameside advise that this expenses is not work related and will be  seen as a benefit and must be reported on the employees P11D at the end of the year.

 

Should you require any further information on work related training costs please contact one of the team at Your Tax Shop based in Tameside on 0161 3395689.