Is CPD tax deductible for self employed?

cheeseontoast

SO started a new business last year, this year is his first tax return. Money is tight so trying to do it ourselves. Just wondering if CPD is an allowable expense? He works in IT so upskilling is important to his business.
Thanks in advance!

thegolfer

cheeseontoast wrote: »

SO started a new business last year, this year is his first tax return. Money is tight so trying to do it ourselves. Just wondering if CPD is an allowable expense? He works in IT so upskilling is important to his business.
Thanks in advance!

Yes tax deductible, relevant to the business.

wally1990

I work in an accountants and CPD is generally an allowable expense

amtc

Don't forget obvious things...suits, dry cleaning, stationery, printer cartridges. I do know one guy who claimed teeth cleaning (probably a step too far!)

Also claim the accountant as well. Lots don't.

L.Jenkins

https://liamburnsandco.ie/contractors-expenses/ Yes, CPD can be claimed.

L.Jenkins

amtc wrote: »

Don't forget obvious things...suits, dry cleaning, stationery, printer cartridges. I do know one guy who claimed teeth cleaning (probably a step too far!)

Also claim the accountant as well. Lots don't.

I thought dental and medical expenses could be claimed on personal, taxable income only.

wally1990

L.Jenkins wrote: »

I thought dental and medical expenses could be claimed on personal, taxable income only.

That is correct they should only be claimed on a personal return

Personal Medical expenses should NEVER be claimed as company expenses for a tax deduction

But some people don't give a F

Victor

amtc wrote: »

suits, dry cleaning

Note that it will be difficult to justify clothing unless it's safety clothing or a uniform (suits aren't a uniform) as it doesn't fulfill the wholly, exclusively and necessarily rules.

I do know one guy who claimed teeth cleaning (probably a step too far!)

Possibly justifiable for a model or actor.

L.Jenkins

wally1990 wrote: »

That is correct they should only be claimed on a personal return

Personal Medical expenses should NEVER be claimed as company expenses for a tax deduction

But some people don't give a F

On that note, I'm out of work at the moment, but as a trainee accountant, I've seen business owners provide receipts to claim back vat on the most ridiculous items, such as tea, biscuits and cigarettes.

wally1990

L.Jenkins wrote: »

On that note, I'm out of work at the moment, but as a trainee accountant, I've seen business owners provide receipts to claim back vat on the most ridiculous items, such as tea, biscuits and cigarettes.

*Shakes head*

Few examples I've had (and I'd a lot more )

I've had items purchased in different countries so the receipts are in a different language and they might name him 'computer equipment' and a quick google translate or store/product search and up comes an Iron (for clothes)


Or I had computer hardware , googled the store and product numbers from receipts and kite surfing equipment

Also had 'the below classed and actuals

'wearable mobile charger' = Fitbit

Aviation tools = apple smart watch

Laptop = PS4 +games

Business tool = children's beds(with frozen banklets/posters etc )


Electronic = Home cinema surround sound system

Work item = GHD hair straightener


Some are just stupid ,

Business meal = (receipt clearly states ) lesuireplex children's birthday party of 13 with 1HR bowling + food/drink

I could go on and on with the ****e that's wastes my time

Victor

L.Jenkins wrote: »

On that note, I'm out of work at the moment, but as a trainee accountant, I've seen business owners provide receipts to claim back vat on the most ridiculous items, such as tea, biscuits and cigarettes.

Tea and biscuits are probably legitimate as staff meals are tax free. Cigarettes - only if you are selling them on.

barneystinson

Victor wrote: »

Tea and biscuits are probably legitimate as staff meals are tax free. Cigarettes - only if you are selling them on.

No VAT deductions for food / drink unless they are for resale. Whether they are deductible from profits for income tax is a different question and depends on the case.

Cloudio9

amtc wrote: »

Also claim the accountant as well. Lots don't.

Hmmmm well if they don't they probably need a new accountant.

tanit

amtc wrote: »

Don't forget obvious things...suits, dry cleaning, stationery, printer cartridges. I do know one guy who claimed teeth cleaning (probably a step too far!)

Also claim the accountant as well. Lots don't.

I'm pretty sure you can't claim things like suits and dry cleaning as they are not strictly related to the business so long as they are not safety/protective clothing. It's like food, people have to dress and eat whether they work or not so long as it's not part of the exceptions set up by Revenue you can't claim them

Claiming a deduction for expenses

Obviously things like accountancy, stationery, etc and if you work from home a portion of the telephone, electricity etc can be deducted for both income tax and vat

L.Jenkins

Victor wrote: »

Tea and biscuits are probably legitimate as staff meals are tax free. Cigarettes - only if you are selling them on.

No. Her tea, biscuits and cigarettes were for personal use.

amtc

This was advice given to me by an accountant re claiming for suits and cleaning! He said it was acceptable when tendering for jobs etc. In a situation where you wouldn't normally have a suit.

He also said to me not to claim for portion of property tax as gives revenue claim on ppr

barneystinson

amtc wrote: »

This was advice given to me by an accountant re claiming for suits and cleaning! He said it was acceptable when tendering for jobs etc. In a situation where you wouldn't normally have a suit.

He also said to me not to claim for portion of property tax as gives revenue claim on ppr

It's very difficult for someone to argue that they wouldn't otherwise have a suit. The most often cited case law on this issue (Mallalieu v Drummond) related to a lady barrister who tried to claim the cost of her formal blouses etc to wear to court etc on the basis that outside of court she only ever wore colourful clothes... she lost her case.

Victor

barneystinson wrote: »

It's very difficult for someone to argue that they wouldn't otherwise have a suit. The most often cited case law on this issue (Mallalieu v Drummond) related to a lady barrister who tried to claim the cost of her formal blouses etc to wear to court etc on the basis that outside of court she only ever wore colourful clothes... she lost her case.

Was this the case where her barristers gown was allowed as an expense, as otherwise she wouldn't be heard in court?

L.Jenkins

amtc wrote: »

He also said to me not to claim for portion of property tax as gives revenue claim on ppr

Your business should have no dealings with your home and personal assets whatsoever as long as you run an LTD.

FrStone

L.Jenkins wrote: »

Your business should have no dealings with your home and personal assets whatsoever as long as you run an LTD.

Unless you run the Ltd company out of your home. In which case it will impact on ppr relief.

barneystinson

FrStone wrote: »

Unless you run the Ltd company out of your home. In which case it will impact on ppr relief.

Only if part of the home is used exclusively for business purposes. You can of course have a home office without compromising your right to ful PPR relief.