Good News for Self-Employed Training Costs!

Just starting your own business? Great decision! As a new freelancer or sole trader, you might be wondering if you can claim tax relief for training courses.

The answer is yes, in most cases! Here's the breakdown:

• Training to improve your existing skills: This is generally allowed as a business expense, reducing your tax bill.

• Learning new skills to stay updated: This is also okay, as long as the new skill helps you run your current business better.

For example, an online photographer can deduct the cost of a photo editing course, or a plumber can deduct the cost of a basic bookkeeping class.

What won't be covered?

• Training for a completely new business: If you're a taxi driver taking a painting course to become a decorator, that cost probably won't be deductible. The training needs to be relevant to your current business.

Examples of allowable costs:

• Wedding photographer - online photo editing course

• Plumber - introductory bookkeeping course

• Potter - e-commerce and website development course to sell online

• Web designer - short course in AI for website design

• Gas fitter - training to install heat pumps (future-proofs business)

• Personal trainer - nutrition course to develop training plans for clients

• Author - drawing illustrations course to improve children's books

Not allowed:

• Unemployed person - driving instructor course (no existing business)

• Sportswear shop owner - sports science degree (doesn't help sell clothes)

• Makeup artist - tattooing course (not related to current business)

• Taxi driver - painting and decorating course (new business)

If you're unsure, it's always best to check with a tax advisor. But overall, the good news is that most training costs to improve your current business are tax-deductible for the self-employed!