Knowledge Centre

Training costs do have some conditions that have to be met for them to be tax deductible business expenses. Firstly they must upgrade or enhance your current skills that your company already generates income from. If the training goes further than this and teaches you completely new skills unrelated to your current business, the cost of the training will not be a business revenue expense but instead a capital expense which is not tax deductible.

A good example would be an Engineering Contractor who takes a course in Environmental Engineering which is relevant to his current contracts and income. This would be allowable. Where as the same contractor taking a course in flower arranging would be a new skill unrelated to their business that the contractor was acquiring and therefore not a tax deductible business expense.