EIM32545 | Other expenses: education and training: where education is part of the duties of the employment: examples

The costs relating to training courses in other professions may qualify for relief as long as they meet the strict conditions necessary for qualification as detailed in S336 ITEPA 2003. Further information can be found in EIM32525.

The courts have emphasised the importance of obtaining all of the facts in a case before applying the relief under S336. It will be necessary to know what exactly was the office or employment that the person held and what the duties of that employment are. It will also be necessary to look at the details of contract of employment to determine the nature of the contract. Only where the training cost is incurred in the performance of duties of employment, will it meet the conditions required by S336.

Examples of where training costs have been allowed or disallowed can be found below.

Example 1

A scientist is employed by a University department to carry out basic research in polymer chemistry. As part of her continuing research, she pays to attend a presentation at a different university of the findings of a scientist working in the same field. She is required to attend such presentations as part of the programme of research for which she is employed. The subject matter of the presentation directly influences the content and direction of her own research.

The duties of this employment include research. In this case attendance at the presentation is an integral part of the research process and so is one of the duties of the employment. The costs of attending the presentation are deductible.

Example 2

A trainee doctor employed as a registrar on a training contract is required, as a stated contractual duty of the employment, to attend various external training courses. As part of the duties of the employment there is a mandatory requirement to maintain a national training number by attending a series of training courses and events. Failure to complete the course and obtain the qualification will mean that he cannot proceed to the next stage of his chosen profession.

Attendance at the training events is an intrinsic part of the employment and one of the duties of the employment. The costs of travel to the events, course fees and other associated costs met by the employee are deductible.

Example 3

A trainee accountant is employed by a company to maintain business records and do the book keeping of its accounts. As part of his contract of employment, the trainee is required to attend training courses and successfully pass a set of exams in order to become a qualified accountant for the company. The trainee fails some of his exams, and must privately pay to resit those exams in order to continue his employment.

The trainee’s duties of employment include acting as a bookkeeper for the business. Therefore he is not on a training contract where training is an intrinsic contractual duty of the employment. The training costs incurred are not incurred in the performance of duties of employment, and are therefore not allowed as a deduction.