Training & Tax: What HMRC Will (and Won’t) Allow
- Brian Pusser
- Dec 20
- 2 min read
The Smart Way to Claim Without Inviting HMRC Trouble
Most directors either overclaim training costs…or don’t claim them at all.
Both mistakes quietly drain cash from your business.
The truth is simple, but rarely explained properly: Training is deductible when it strengthens the business you already run — not when it prepares you for a different one.
Get this right, and training becomes one of the safest, most powerful investments you can make. Get it wrong, and it’s one of the first things HMRC will question.
Let’s clear it up.
The Rule HMRC Actually Cares About
HMRC isn’t anti-training.
What they care about is purpose.
If the training:
Improves skills you already use
Updates knowledge for your existing trade
Helps you perform your current role better
…it is normally allowable.
If the training:
Prepares you for a new trade
Supports a side venture
Is personal development with no direct business link
…it usually isn’t.
That distinction is everything.
Training Costs That Are Usually Allowable
If you’re running a business, these are the kinds of training costs that typically pass without issue:
Leadership or management training to run your team more effectively
Industry-specific CPD
Sales or marketing training that helps grow your current services
Paid memberships, masterminds, or communities linked to your trade
Strategy days or off-sites focused on improving business performance
In short: If the training makes you better at what your business already does, HMRC is usually comfortable with it.
Where Directors Get Caught Out
This is where I see problems.
Not because directors are careless — but because no one explained the rule properly.
Common examples that raise red flags:
A consultant claiming a property investment course
An agency owner claiming a coding qualification unrelated to their services
“Side-hustle” training put through the company
General personal development courses with no clear business purpose
These may be valuable personally. But value alone doesn’t make them deductible.
HMRC looks at connection to the trade, not motivation.
Why This Matters More Than You Think
Underclaim, and you quietly give up legitimate tax relief year after year.
Overclaim, and you risk:
Disallowed expenses
Additional tax
Penalties and interest
Uncomfortable conversations you didn’t need to have
Training is often one of the first areas reviewed in an enquiry — because it’s easy to misunderstand and easy to challenge.
The Smart Way to Handle Training Costs
Here’s the safe approach I advise directors to follow:
Be clear on how the training supports your existing role
Document the business purpose
Avoid claiming training that prepares you for a different trade
When in doubt, get advice before paying for the course
Handled properly, training is not risky. Handled casually, it can become expensive.
Final Thought
Training should strengthen your business — not weaken it through avoidable tax issues.
When claimed correctly, it:
Improves performance
Builds capability
Reduces tax
Keeps you compliant
If you’re unsure whether a course is claimable, don’t guess.
Ask Brian.
Getting this right once is far cheaper than explaining it later.
