Sole Trader - Further Learning Expenses

godtabh · 24-03-2013 8:25pm #1

I've been working as a sole trader for the last 6 months. Its been ok. I've done a turn over off about €45k.

It was meant to be temporary but I see opportunities. In order to capitalise on these I'd like to do a business course in DIT.

I've spoken to my accountant. He is some what vague. The course would be related to the business. Is the full amount of the course then a deductible? My accountant says yes if it is on a government approved list of courses (it is).

So if my turnover for the year expected to by say €80k and the course is €18k does that mean that I would be taxed on the €62k? I have other expenses but I am trying to keep this simple for me.

Citizenpain · 25-03-2013 1:58am

How are you getting 68?

godtabh · 25-03-2013 9:29am

Citizenpain wrote: »

How are you getting 68?

Sorry that was a typo. Should have been €62k

Citizenpain · 25-03-2013 9:32am

As long as the course fees are wholly and exclusively paid for the purposes of the trade or profession they they should be allowable - is 18k for one year?

godtabh · 25-03-2013 10:01am

€18k over two years.

I've met with DIT who are providing the MBA. They recommend it for people looking to start/grow a business. I've started a business (reluctantly) but now I want to grow it.

Citizenpain · 25-03-2013 10:02am

€9k per year would be allowable then

godtabh · 25-03-2013 10:10am

I think DIT look for the €18k up front as the preferred option of payment

Citizenpain · 25-03-2013 10:15am

propbably need to treat 1/2 as a prepayment in your accounts and spread the deduction over two years

Outkast_IRE · 25-03-2013 10:16am

DIT may prefer the 18K upfront, but the last few years like everyone else colleges have become more "flexible" in hammering out payment schedules i would put some pressure on them to either allow you to pay by semester or by year.

Corkbah · 25-03-2013 10:18am

not sure about sole-traders but isn't there a limit on college course fees that can be deducted (I think I read somewhere that its €5K and must be from an approved list of courses)

godtabh · 25-03-2013 10:19am

I have close to €18k cash in the bank (excluding vat) to pay the tax bill so my thinking was to pay for it in full and completely minimize my tax bill. With other expenses this year I'd be close to making a loss as a result

godtabh · 25-03-2013 10:20am

Corkbah wrote: »

not sure about sole-traders but isn't there a limit on college course fees that can be deducted (I think I read somewhere that its €5K and must be from an approved list of courses)

I think thats for paye people as a tax credit

Sole Trader - Further Learning Expenses

Comments