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!
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