Can I claim for attending training courses?

Question

I work as a contractor for the Ministry of Defence inside IR35, can l claim for attending training courses?

Also if l pay into a pension, are payments taken gross or NET of the 13.8% employers NI contribution?

Answer

In relation to training courses, the cost of attending courses which your company pay for are eligible for a corporation tax deduction if they are incurred wholly, exclusively and necessary for the performance of your duties and are part of your own continuous development. This relates to qualifications that you already hold.

As you are the proprietor of your own company, the costs of obtaining new skills or qualifications are specifically excluded from deduction and will not receive tax relief for the company. In fact, these may even be a taxable benefit in kind on yourself as director. Although further advice should be sought on this issue.

Moving on to the pension question, payments made by your employer into your pension scheme will be made gross (so no further personal tax relief will be available). However, these payments are not liable to Class 1 National Insurance as they are not salary payments but part of your overall remuneration package. This will consist of all salary, benefits and pension contributions.

This question was answered by Vantage Fee Protect.