Shaun Taylor training at NLT Training Services

With increased National Insurance contributions, fuel duty, and business rates coming in April, businesses are looking to offset their tax liabilities in the new 2025/26 tax year. One effective way to do this is by claiming training expenses as tax deductible.

But its not just tax savings that can benefit a business when they invest in training,

A long-held belief among some employers has been that investing in training and development enables staff to move on more easily. However, the Great Resignation has shown that the opposite tends to be the case. Many workers exit roles complaining of a lack of opportunity to learn and advance. Not only does having a training programme offset tax, but it also helps with staff retention.

According to Pew Research, 63% of employees who quit their jobs in 2021 cited “no opportunities for advancement” as the primary reason.

If you want to invest in staff training to not only offset tax liabilities but also help retain employees, then here’s our guide to what kind of training HMRC allows businesses to claim tax relief on.

Unleashing the Tax Benefit of Employee Training

Investing in employee skills not only provides tax allowances but also boosts innovation and productivity. For example:

Allowable Training Expenses

HMRC allows tax relief on training costs to improve or update skills relevant to your profession or trade. This includes courses, seminars, workshops, conferences, and self-study materials.

Eligibility Criteria

  • Relevance to Profession or Trade: Training must relate to the employee’s current job.
  • Qualifying Courses: Accredited courses, professional certifications, and vocational qualifications.
  • Necessary for Job Role: Essential for maintaining or improving job performance.
  • Costs Incurred Wholly and Exclusively for Business: Only business-related expenses qualify.

Examples of Allowable Expenses

  • Course Fees: Tuition for relevant training.
  • Study Materials: Textbooks, journals, and educational resources.
  • Travel and Accommodation: Costs for attending training sessions.
  • Professional Memberships: Fees for relevant professional bodies.
  • Equipment Costs: Specialised equipment required for training.

Note: Deductions cannot be claimed for training to start a new business or expand into unrelated areas.

Documentation and Record-Keeping

It is important businesses maintain detailed records of all training expenses, including invoices, receipts, and certificates. NLT Training Services can help with this, keeping detailed records of all training booked with us and delivered to both individuals and businesses.

Training Accessibility

Ensuring staff can access training is crucial for business success. NLT offers training in variety of formats, including online eLearning courses, in person formats at either our Scunthorpe or Chesterfield training centres, at business’ premises, and also via distance learning for CMI Management and Leadership courses. This training flexibility caters to diverse learning styles and needs, increasing accessibility and engagement.

Don’t miss out on tax allowances in 2025/26 

Contact NLT Training Services on 0333 880 3540 to make the most of your training investments.

If you don’t see what you are looking for on our website, or you have identified training that could be beneficial to you or your business, get in touch today.