Sole Trader and Research Postgraduate

[raven]

Hi,

I currently work as a self employed consultant in IT software development, operating as a sole trader. I'm considering undertaking a research Masters in university, in a field related to my work. Actually, I plan to use the research to develop some ideas that I have which I would eventually hope to productize.

I'm wondering if I can deduct annual university course and registraton fees as an expense.

I know fees are deductible even for PAYE workers to the tune of 20%. However, given that the research really is for the furtherment of my self employment, are theey 100% deductible in this context?

Thanks in advance....

 

[Domo]

This is a bit of a grey area.

For the self-employed:

A deduction for training courses is available where the course can be considered to be “wholly and exclusively” for the purpose of the trade. Courses to put you in a position to carry out your trade will not qualify, but courses keeping you "up to date" will. So I don't think this would qualify under this heading to include that cost in your accounts to reduce your profits or create a loss.

However, there is relief available for Third Level tuition fees against income tax (whether self-employed or PAYE), if the course and college are on the Revenue approved list. In this instance you have to have a tax liability to claim the relief against.