Point taken. He took the course the same month and didn't start trading til 1st March, so he'd done nothing wrong in that respect. I just wasn't sure whether HMRC looked at it differently with it being a Ltd Company
Regards
John
PS I'm just doing his pre-trading receipts and come across an invoice for training locks. Do I go by the same criteria above and disregard it?
-- Edited by xantia743 on Tuesday 20th of March 2012 04:40:31 PM
He's a director and the company that he's started was established to fulfil a role for which he is not currently qualified or skilled to offer.
He cannot trade until he has the training which means that whilst the company was started with a profit motive there was no way for it to make a profit with the skills that it currently has.
Think of it this way, if you started a company offering training in flying but did not know how to fly do you think that HMRC would look kindly on you then having to train to offer the services for which the company was established.
Tax benefits are only available to enhance skills that you already have, not to learn something new.
In this case the director should have acquired the skills necessary in order to trade before establishing the company and then further training once the business was trading would, as a director only need to pass the wholly and exclusively test rather the wholly, necessarily and exclusively test required for expenditure for employee's.
Short answer is that to my mind this one is no he can't put legitimate, relevant training off against tax until the business is actually trading.
I expect that others may have alternate opinions on this one
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
