CPD expenses+Tax

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I couldn't decide whether to put this in here or practice management.

Can anyone advise me whether cpd expenses (cost of conferences etc ) can still be claimed against income tax. I last completed an UK tax return a few years ago and cpd activity was one of my business expenses (I worked NHS and private) I now only work in nhs and so am just on PAYE, the young lad on the tax office telephone helpline tells me that cpd is no longer deductible.

Is this true?

 

Not exactly. Please see this http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm

Would be interested in anyone elses interpretation of this, but my understanding is if it is wholly for business purposes (anyone do extra cpd purely for a hobby? ) and not establishing an entirley new skill it is allowable. Most CPD by definition is going to come under this I imagine.

If you were to do a recognised qualification such as a masters this would be somewhat more debatable and in this case it may be worth discussing with your local tax office and getting something in writing if you're going to claim.

Ian

 

Thanks Ian,

That is broadly my understanding.

My feeling is that whilst I would not be able to retain my registration if I did not attend CPD, it is therefore an unavoidable expense, in the same way that the HPC registration fee is a deductible expense.

Cheers

simon

 

All,
When I worked in the NHS CPD was provided in-house by the employer, and as such, was not tax-deductable.

Am I correct in assuming that this is no longer the case?

regards

Catfoot

 

Personally I have never had any CPD apart from mandatory training (first aid, back care etc) picked up by an NHS trust (in 23 years). Although next weeks conference will be funded so it's not all doom and gloom

I guess it depends on the trust.

If my conference attendance had been funded I would not be attempting to claim the deductible

 

Hi All

I recently attended some courses run by the tax office for the newly self employed. I was told that all courses, including expenses - hotels, meals, could be claimed against your tax return. Even for those solely employed in the NHS. On completing a masters degree, there was a different answer from each of the instructors. The first said no, but after explaining our role and CPD thought that it would advisable to contact your local tax office to check before commencing. The second instructor thought that there shouldn't be any problems, as long it was not perceived as learning an entirely new skill set.

Regards,

Joe

 

Hi Joe

If your self employed your accountant should be able to give you the correct answer??
Mine has been laying off all my CPD against tax for years including the associated expenses Hotels, fares, food etc.

A good accountant can save you loads of tax if they are that good.
Mine is and has :drinks
Hope that helps
Cheers
D

 

Simon

As a person who is just on PAYE you can in principle still claim legitimate expenses against your annual tax liability, i.e. if you have no liabilty then you cannot claim anything back, but since you will be paying tax then you may be able to claim for course that are at your own expense. If this is you first claim then first you have to write to HMRC PAYE & Self Assessment P.O. Box 1970 Liverpool L75 1WX and they will return a decision within a number of weeks.

Regards Dave Smith

 

The rules for expenses are different for Schedule D (self-employment) and Schedule E including PAYE. The self -employment rules are more relaxed whereas those for Schedule E require that the expense be incurred "wholly exclusively and necessarily" in the course of the performance of the duties of the job.Usually this narrow definition is tough to beat but in this instance there is a good case; you can argue that you cannot perform the duties (legally) of a chiropodist/podiatrist unless you are registered with the HPC as such and since your continuing HPC registration is conditional upon satisfying the HPC of your CPD, the expense of meeting that requirement is an admissable expense. Certainly worth a try.