Any accountants out there that could answer this one (or anyone else for that matter)?
If one spends a year in training, you don't earn during that year. In fact you could spend up to £55K on training. Could you not claim this as a loss then offset this loss against the following few years earnings?
Would you have to register yourself as a company to do this?
Any replies appreciated!
"I am going to enjoy this!"
RVR800
3rd Apr 2001, 15:08
IMHO
It is all about the nature of the business
and its turnover and what is 'reasonable'
If you were a businesman selling software
into the Eu and needed a PPL/IR and a ME
rating then it would be tax deductable and
no VAT if you were above threshold.
However if your business was set up
1. Having not paid VAT in that tax year
2. Not paid corporation tax in that tax year
The business would be in loss with a loss
equivalent to what you had paid out for
your training - so you wouldnt win
BA could then buy the company and its
director for a RHS position and declare it
as a tax deductable purchase .. ha ha ..
Incidentally this whole thing is a scandal
why is VAT payable on tuition fees anyway
and on Fuel etc etc .. Much discussed
little red train
4th Apr 2001, 00:12
A while back over dinner with some accounting types, they said that If you were self employed, offsetting the cost oftraining against income tax was allowable upto three years. however, I think this is only true it were training pertinent to the occupation, they had done it against the advanced (totaly self funded) accounting bits.
RV800, I'm not sure if this in the same area as what you are refering, but I can't offer bussines as say an air taxi, unless I have a CPL. therefor no Tax could have been paid for a bussiness that could never have exsisted unless I had the training, a catch 22, surely accepted by the Tax Man.