Claiming For Training and Development Expenses

Claim tax deductions for courses, books, memberships and more.

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Updated on
March 1, 2024
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Introduction

As a freelancer or contractor operating through a limited company, keeping up with the latest developments in your industry is key. In the constantly evolving landscape of skills and knowledge, investing in your own training, development, and learning is not just beneficial for your career growth but also for your company's financial health. 

The good news? Many of these educational expenses are claimable, helping you reduce overall tax liability. Let’s dive into understanding which training and development costs you can claim and how Mighty's automated accounting platform can streamline this process for you.

What can you claim for? 

Training Courses

Whether online or in-person, professional training courses can be vital for enhancing your skills or learning new ones. These could range from industry-specific workshops to general business management courses. If the purpose of the training is to maintain or upgrade professional skills relevant to your business, the cost is typically seen as an allowable expense. This means your company can pay for the course and receive tax relief on the cost.

Books and Trade Subscriptions

Keeping updated with industry insights and trends is vital, and trade subscriptions or books are great resources. Expenses for professional books, journals, and subscriptions that are relevant to your business can be claimed. Remember, these should be directly related to the nature of your freelancing or contracting work.

Memberships

Membership fees for professional bodies or trade associations are often overlooked. If membership is necessary or helpful for your business, your limited company can pay these fees. Not only does this keep you connected with industry peers and trends, but it also helps reduce your taxable profit.

Audiobooks and E-Learning Materials

With the digital age, learning isn't confined to traditional formats. E-books, audiobooks, and online learning materials focusing on skill development or business management can also be claimed. These modern learning tools can be particularly beneficial for busy freelancers and contractors seeking flexible learning methods.

How to claim in Mighty

Mighty's makes claiming these educational expenses quick and easy, taking care of your bookkeeping and applying the tax savings for you.

To claim any training or educational expenses in Mighty: 

  • Find the training/education transaction in your bank feed
  • Click categorise and select the ‘Training and Education’ under the day-to-day tab
  • Select the VAT rate you were charged (if you’re VAT registered)
  • Click approve

Real-Time Tax Optimization

Mighty will apply these expenses and optimise your tax in real-time. Once claimed you’ll notice a lower corporation tax bill on your dashboard.

Want to streamline your accounting and minimise your tax? Get started with Mighty today! Try free for 30 days, no card required.

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