Training Reduces your Tax Bill

February and March are generally amongst the busiest of the year for professional training courses. Two of the reasons are that for companies and contractors there are strong financial arguments to invest in training at this time of year.

They are obvious when you think about it – but many people fail to take advantage of the opportunities to make the most of available budgets and to have the taxman help fund salary enhancing training and certifications.

Don’t Lose Your Training Budget

All public sector bodies and many in the private sector work to an end March tax year. Prudent and hard working managers find  they are hurtling towards the financial year end having failed to undertake the skills development programmes they planned for themselves and their team. Work is flat-out and there’s no time to organise, yet alone take time out for training.

There is a simple, money-saving solution. FOCUS provides Training Credits to those who have funding available but are not yet ready to book specific courses.

As an extra bonus, if you buy Training Credits to a value of £5,000 or more you will receive a 5% discount from the already highly competitive prices on the Focus website.

You have a full two years to utilise the Training Credits. They can be applied to any of the courses on the Focus website, including online and in-house courses.

Training Credits – Details & Application Form

Reduce Your Tax Bill

Companies (from the largest to the smallest) can offset training against tax. By and large, any training which makes their employees better able to do their jobs (and this includes very general sorts of training which may not have an immediate impact on their ability to do the work) will be allowable.

For contractors this may well mean that there is a tax saving of 40% if the alternative is for the same funds to be taxed at higher rate income tax. For companies tax rates can vary but a 20% saving would be typical.  As you approach the end of the tax year availability of funds and the tax implications become clearer.

There is no restriction on the way the training can be delivered. It can be classroom training, online training, distance learning, computer based training, work experience as well as seminars and conferences. It can be externally or internally provided, full time or part time.

This tax benefit is not available to employees who pay for their own training.  However, if your employer is willing, then arranging for your company to pay and in return making a “salary sacrifice” can be beneficial for both parties.

The ultimate objective of course is not simply to reduce the cost of training. The real long term benefit will come from improved business efficiency for companies and enhanced earning potential for individuals. Focus specialises in courses for business and IT professionals. Many of the courses teach best practice techniques, and many will lead to professional certifications.

Focus offers independent advice and our training advisors would be pleased to assist.

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