Deductible tax expenses

[paynes]

I thought that costs of attending ongoing professional development courses (particularly where required by a professional body for ongoing compliance) passed the “wholly necessarily and exclusively” test and can be treated as deductible expenses on a tax return.

However HMRC have told my wife she cannot do this (sheÂ’s a vet). What do you think? Also, how would costs of attending the course (hotel) and professional textbooks be treated? I can see that books may be a moot point.

Many thanks

[Bob Jones]

In addition to wholly, exclusively and necessarily an expense of this nature must be incurred in the performance of the duties of the employment. HMRC will argue that you are not performing the duties of the employment whilst incurring the expense - the expense puts you in a position to perform the duties or puts you in a position to continue to perform the duties but is not incurred in actually performing the duties.
If a person is self employed the expense could very well be allowable as the "necessary" and the "in the performance" tests do not apply .. books are allowable if used "...in the performance..."

Put Blackwell v Mills in Google and click on LONDON TRIBUNAL CENTRE - 3rd one down ..

Hope this helps

Bob
www.internet-taxation.co.uk