Tax relief for training costs

If you are self-employed it is important to know if an expense is tax allowable. Any allowable costs can be used to reduce your taxable profit.

As a general rule you can claim for items that you would normally use for less than 2 years as allowable expenses such as stationery and other office sundries as well as rent, rates, power and insurance costs.

HMRC lists the following office expenses as being allowable:

• office costs, for example stationery or phone bills
• travel costs, for example fuel, parking, train or bus fares
• clothing expenses, for example uniforms
• staff costs, for example salaries or subcontractor costs
• things you buy to sell on, for example stock or raw materials
• financial costs, for example insurance or bank charges
• costs of your business premises, for example heating, lighting, business rates
• advertising or marketing, for example website costs
• training courses related to your business, for example refresher courses

Regarding training costs, you can claim training costs that help you:

• improve skills and knowledge you currently use for your business;
• keep up-to-date with technology used in your industry; 
• develop new skills and knowledge related to changes in your industry; or
• develop new skills and knowledge to support your business – this includes administrative skills.

You cannot claim for training courses that help you:

• start a new business; or
• expand into new areas of business that are not related to your current business activities.