UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
It may not be allowable at all - could you advise what your trade is and what the course enabled you to do
For example did it provide you with the ability to offer new services and therefore a greater profit
OR was it a refresher course or building on an existing skill?
Was this just for you - so more of a personal cost and who paid for it - you or directly from your company
Please advsie further
You do not submit it via the CT600 - you show the payment made under employee expenses and then provide yourself with a P11d (to declare the paid benefit) which you then show the benefit provided on your self assessment along with the claim to Zero it as an expenses (also through your self assessment)
I cannot comment whether its exempt as you have told me nothing about the training or what it was for, so I accept you have satisfied yourself that it is exempt.
You do this this long winded way as its a personal expense and not a company expense
You still have to report it if you are letting the company "cover" its cost - which is a separate issue completely from an individual - you have asked the question from the companies perspective - and I have advsied that its an employee cost for the CT600 (so one would assume you wish to claim the cost from your trading profits)
But then you have report it to HMRC as the company has claimed it and it nees to be advsied to HMRC that its a payment made by the company for the employee by way of a report on the P11d - which then shows its exempt from Class 1A Employer National Insurance and then you as the employee have to report the P11d information through your self assessment - to show
1) You had this paid for you BUT
2) its exempt
Or do you earn less than £8500
in which case you would need P9d
And I have advised you - under the employee costs - (along with salaries/wages) and Class 1A National Insurance which are then deducted for the final figures to be shown on the CT600
That makes no difference the advise still stands (it just then has a cash value rather than money paid directly to the employee)
OK let me make this really simple
You are claiming these costs from the profits of the company - so you can show you, the company are out of pocket
Then you have paid this for the employee and HMRC know you have claimed this for the employee so it then has to be linked to the employee whilst also telling HMRC its exempt - Yes?
So the advise I give you ensures ALL those remits are met considering you still fail to tell me what the training was for - so I have to assume it is exempt
1) you get the costs for the employee and do not suffer Class1 A NI for making good this amount
2) The employee remains exempt for the cost of you provising this training
Its not been provided to all employees (such as in house training which would of course need NO reporting anywhere other than the costs you suffer to provide )
I am ex HMRC - and am not going to waste your time doing something you do not need to
No its not - its telling you what to do when providing training and whats exempt - you did not provide this training you sent ONE employee out to undertake training and paid for it!
I shall opt out as you are not taking any notice of what I am advising and we are just going round in circles, I have answered your question beyond your original question and you still are not accepting the difference.
I shall let another expert assist and maybe they will give you the answer you wish to hear.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to givesome assistance.
The general rule is that if the trianing is to enhance existing skills it is allowable against tax, but if it is to acquire new skkills it is not so allowable.
I do hope that I have cleared the air for you in this matter.
It would merely be included as part of the company's expenses in calculating Box 3 on the Short Return.
You would merely pay the Training costs out of company funds and ultimately they would be charged to the Profit and Loss Account.
I suggest that no P11D entry is required; the ccmpany has not made any payments which would be construed as a 'benefit in kind' which is what is usually reported on the Form P11D.
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Are you using the short or long version of the form?
Forget that last request!
There isn't a specific box for you to enter this data. By passing it through the company's books it will reduce the profit which you enter at Box 155.