Please note the following information from the Tax Office Website, I hope this makes it clear whether you can claim the cost of attending a Little Acorn Network Evening on your annual Tax Return.

The Self Employed Helpline is 0845 9154655 they are very helpful and friendly.

The Technical Tax Experts for Norfolk Area are on 0845 3667851

BIM35660 - Capital/revenue divide: intangible assets: proprietor's training courses

Tax Bulletin article

The treatment of expenditure incurred by the proprietor of a business on training courses for themselves was described in TB1G published in November 1991, which read as follows:

“There is some uncertainty whether the cost of proprietors of a business attending a training course, directly related to the business activity, is deductible in arriving at the profits chargeable to tax under Schedule D Cases I or II.

Where attendance at a course is intended to give business proprietors new expertise, knowledge or skills, which they lack, it brings into existence an intangible asset that is of enduring benefit to the business. We take the view that the expenditure is therefore of a capital nature, and deduction is prohibited by ICTA88/S74 (f).

On the other hand, where attendance is merely to update expertise etc. which proprietors already possess, the expenditure is normally regarded as revenue expenditure and will be deductible if it satisfies the ’wholly and exclusively for the purposes of the trade' test in ICTA88/S74 (a)” - see BIM42105.

You should therefore allow proprietors a deduction for expenditure that merely updates existing expertise or knowledge but disallow any expenditure that provides new expertise or knowledge (particularly where it brings into existence a recognised qualification like an Master of Business Administration).