Education & training costs - what's allowable?

If you're self-employed, you know that investing in yourself or your employees is key to staying competitive, and confident in your business. Whether it's an online course, workshop, or qualification, training can help you level up your skills - but can you also claim tax relief on it?

The answer is - it depends on the type of training.

Here's everything you need to know about training costs and tax relief.

Training that improves existing skills

If you're taking a course that helps you do your current job better, the cost is usually allowable as a revenue expense. That means it can be deducted from your profits before calculating your tax bill.

Examples of allowable training:

• A web developer taking a course on the latest coding languages

• A freelance photographer upgrading their editing skills

• A social media consultant attending a digital marketing workshop

  
  

This kind of training is seen as helping you maintain or improve your current income - which HMRC supports.

Training for new skills or a career change

If you're learning entirely new skills that could prepare you for a different type of business or service, the cost usually isn't allowable. HMRC may see this as a capital expense, which means you can’t deduct it from your profits.

Examples of non-allowable training:

• A graphic designer studying bookkeeping to become an accountant

• A copywriter taking a coding course to launch an app

• A virtual assistant training to become a life coach

  
  

In short, if the training is helping you enter a new line of work, it's seen as an investment in a new business asset - not a cost of running your current one.

Our tips for business owners considering training

1. Keep clear records of what the training was for and how it relates to your existing work.

2. Check with an accountant if you’re unsure whether it’s claimable.

3. Don’t let tax rules stop you from growing - even if some courses aren’t deductible, they may still be worth the investment for your business long-term.
   

Final thoughts

When you're self-employed, every penny you invest in your business matters - and that includes training. But getting the tax treatment wrong can mean the difference between valuable tax relief and an unexpected cost. Before you hit “enrol,” make sure the course qualifies for relief based on your current work - not the direction you're hoping to grow into. A quick check now can save you both money and stress later.

If you're unsure, it's always worth speaking to an accountant who understands how HMRC views training, so that you can invest in your growth with confidence. book a free discovery call today.

*This blog is for general information purposes only and does not constitute personalised tax, financial, or legal advice. The rules around allowable expenses, including training costs, can vary depending on your specific circumstances. Always consult a qualified accountant or tax adviser before making decisions that could affect your business finances.