Pay tax or give staff new skills?
This is something that keeps falling off our mental check list so we thought to mention it on our blog.
If your company pays tax then you can offset 100% off the cost of any training focused on developing your business against your taxable profits. Isn’t that a nice thought!
This popped up as we were working out a large staff development programme to run over the next few months with a new client. It is costing our client around £19,000 – which after the various tax calculations will cancel out half of her tax bill for her business.
The result – she gets staff who are motivated, skilled and focused on improving her business and she pays half the tax this year!
The only loser in this is the tax man - I think I can stand a little of that in the current economic climate!
PS. I would go ask your accountant about this before taking this as pure truth – as with anything related to HMRC there are specific requirements that need to be met – here is the relevant tax note for those with a passion for obtuse language like me!
PPS. Got questions about increasing your profits through developing your staff, ask us – got questions about tax, ask Dean at mmi online.