Claiming for Open Uni

[emile1973]

I was just wondering if I could claim for my Open University course.
It is an Early Years degree and I am half way through it. Can I claim for it as an expense to enhance my business. A local childminder's accountant says she would be able to and also claim for any babysitters she uses.
I do it in my spare time so would not need to claim work days loss of income.

What are your views and understanding of this?
Many thanks x

[VeggieSausage]

Someone else will have good advice here (Mr Anchovy) but I would like to think that you can...

[FussyElmo]

Mmm do you have to have the course to be a childminder?

Seeing as we dont I dont see how it will be an allowable expense.

Of course I may be wrong :D

[emile1973]

Hi there
No I do not need it but I was wondering if it could be personal development or under the training heading. I do feel my practice would benefit from it though.

It would be interesting to know though. X

[BuggsieMoo]

Id be interested to know this too as I have also started a uni course in Early years practise which is costing a pretty penny! x

[TAZ]

I would have thought that you could claim this. Although it is not a requirement for childminding it is directly related to a childminding career (will improve your practice) & for future career progression in this area therefore continuing proffessional development.
Good luck:clapping:

[MrAnchovy]

A self employed person can only claim for training that is updating existing knowlege.

And you can never claim for babysitting your own children while you attend training: this is such a basic fact that either your friend has got her wires crossed or the accountant needs some training himself!

[emile1973]

Thank you for clarifying Mr A.

[Wheelybug]

But isn't this uni course updating exisiting knowledge? We have some knowledge of good practice, but ideas about what is considered good practice are changing all the time as new research is done, which is covered in this uni course.

Cathy

[BuggsieMoo]

Mine is all about the new EYFS and how it is implimented into Early Years etc. Is this claimable?

[MrAnchovy]

But isn't this uni course updating exisiting knowledge? We have some knowledge of good practice, but ideas about what is considered good practice are changing all the time as new research is done, which is covered in this uni course.

Cathy

It may be; under self assessment that is for you to decide. If HMRC raise a query or investigate your return they may take a different view and raise an assessment on you for additional tax and NI. If they decide that as well as being wrong your decision was "careless" you may receive a penalty on top.

Certainly an experienced childminder doing a Level 3 to "tick the box" would have a better chance of arguing this is not acquiring new knowlege or skills than someone doing a degree to achieve EYPS.

HMRC's view of the law is here (http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm).

If you are employed by a company and that company pays for your training then that is an allowable expense for the company and is not normally a taxable benefit: unfortunately the Childcare Act currently prevents companies from registering as childminders.

[emile1973]

After just reading the HMRCs info on this I can see both sides of the query. I may give them a call too.
It would be interesting to know as I really do look at my degree as an update of already acquired knowledge etc as I did my level 3 NNEB in 1991

[Wheelybug]

It may be; under self assessment that is for you to decide. If HMRC raise a query or investigate your return they may take a different view and raise an assessment on you for additional tax and NI. If they decide that as well as being wrong your decision was "careless" you may receive a penalty on top.

Certainly an experienced childminder doing a Level 3 to "tick the box" would have a better chance of arguing this is not acquiring new knowlege or skills than someone doing a degree to achieve EYPS.

HMRC's view of the law is here (http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm).

If you are employed by a company and that company pays for your training then that is an allowable expense for the company and is not normally a taxable benefit: unfortunately the Childcare Act currently prevents companies from registering as childminders.

Thanks for your reply and the link. It does sound like you are right unfortunately. Better save some extra for tax incase I am ever investigated as I did claim last year and amend my accounts for this year :blush:
Still feel it is very unfair though!

Cathy.

[MrAnchovy]

It is very unfair but this has been the position for over 20 years despite a number of protestations by professional bodies (not sure if NCMA is one of those). The problem as HMRC see it is that it would open the floodgates so that anyone taking a degree could claim that it was an allowable expense - and with the cost of a degree now around £30,000 that is a problem.

But I think there ought to be some distincion between initial training and Continual Professional Development. As it happens I have it on a list of things I am planning to start a campaign on shortly, the other one being registration with the Information Commissioner's Office. Anything else to add?