Allowable Training Expenses

by **CA123** on Thu Sep 15, 2011 12:21 pm

If a company pays to have an employee attend a training course is the expense allowable for tax purposes?

The course is a long term residential course and the individual was employed before the course and will resume employment after it.

Also is this affected if the individual is related to one of the directors?

The course is to assist with the better preformance of the employees duties

Thanks

by **Tax Champion** on Fri Sep 16, 2011 4:16 pm

How long-term?

In general there is no reason why it should not be an allowable deduction for the company if it is for the purpose of the trade, and training provided by an employer is not taxable as a benefit on the employee.

If he is a genuine employee the relationship should not be relevant

by **Incredulum** on Wed Sep 21, 2011 11:38 am

Is the payment wholly and exclusively for the purposes of the trade? If so, no problem.

I'm bemused that you say the individual was an employee *before* and *after*. What about during?

Or is this the director's son who had a holiday job and the company is paying his tuition fees etc. etc. for three years whilst he is an undergraduate with a view to his returning to become an employee afterwards?

by **mullet** on Fri Sep 23, 2011 10:27 am

Agree with Incred, this sounds like a way of trying to make uni tuition fees tax deductible for Daddy's company. I can't think of a "long-term residential" course which would link with ongoing employment and would cause that employment to effectively cease then restart. Trainee pilots often go to America, but you wouldn't call that "long-term".