HMRC has updated guidance on training costs, which will allow business owners and self-employed professionals to claim tax relief more easily. This article breaks down what’s now allowed and how it may benefit you.

Are you self-employed or run your own business? Well, there is good news – HMRC has recently updated its guidance on training course expenses, making it easier for you to claim tax relief for certain courses. 

We work with a diverse range of clients, including tradespeople, business owners, and those in the security industry, where regular training is often essential. Many of our clients invest in courses such as SIA licence renewals, CP top-ups, first aid, and advanced driving, so this change is especially relevant.

What has changed?

HMRC used to only allow tax relief for training that would ‘refresh’ existing knowledge. Meaning any courses that introduced new skills or qualifications were considered a ‘capital expense,’ and therefore not claimable against profits. 

Now, HMRC has clarified that training costs can be claimed as long as they are wholly and exclusively for your current trade. This includes training that:

• Updates your current skills and knowledge, or
• Provides new expertise that is directly relevant to your existing business activities

Training costs will not be allowable if they relate to starting a brand-new business or expanding into an unrelated trade.

Here’s a example, particularly relevant to our clients in the security sector:
A self-employed security professional renews their SIA licence by completing a top-up course in physical intervention and conflict management. Because this training is essential for continuing in their current role, the cost is likely to be considered a valid business expense.

Why this matters

Training is often an essential part of running a successful business, whether renewing a professional licence, improving your understanding of new regulations, or staying ahead of industry developments,. These updated rules mean you can now invest in your skills knowing that there is more room for costs to be tax-deductible.

Need Advice?

If you are still unsure whether a particular course qualifies, or you’re wondering how to record training costs in your accounts, we’re here to help. We offer tailored support for business owners and self-employed professionals, with a clear, jargon-free approach.

Read the full HMRC guidance here: BIM35660 – Capital/revenue divide: intangible assets: proprietor’s training courses – HMRC internal manual – GOV.UK

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