Training Costs: employees, directors and self employed

Employees and Directors: BIM 47080

Usually all expenses are allowable as revenue1 expense, except where employee and employer has some link outside work e.g. employee is son/daughter of the employer.

In such cases it should be ascertained whether the expenditure would have been incurred on an otherwise unconnected employee doing the same job.


Self-employed: BIM 35660

Expenditure is revenue expenditure if the course merely updates existing expertise or knowledge. Expenditure on a course which provides new expertise or knowledge is capital.

Capital expenditure makes it an intangible asset. Self-employed are not allowed capital allowance on Intangible assets. Only companies are allowed capital allowance on intangible assets.



  1. Considered revenue as an employee can resign anytime.