Can sole traders claim training and course costs as expenses?

Understanding what counts as a deductible training cost for sole traders

If you’re a sole trader, training can feel like one of those “necessary but expensive” parts of running a business. You might take a course to sharpen your skills, keep up with changes in your industry, or learn a new tool that makes you more efficient. Naturally, the question comes up: can you claim training and course costs as business expenses?

The short version is that many training and course costs can be claimed, but not all of them. Whether something is deductible depends on why you took the training, how it relates to your current trade, and whether it’s helping you maintain and improve an existing business rather than helping you start a new one or enter a different line of work. In practice, the difference between “upskilling” and “retraining” is often where the tax treatment is decided.

This article explains the principles that typically apply to sole traders, what kinds of training are usually allowable, where the common red lines are, and how to keep records that stand up to scrutiny. While the exact rules and wording depend on your tax authority and location, the themes are consistent: the expense needs to be connected to your business and incurred “wholly and exclusively” (or the equivalent concept) for business purposes.

Why the purpose of the training matters more than the price tag

Tax rules generally care less about the cost and more about the purpose. A £50 online workshop and a £5,000 professional certification can both be deductible if they meet the same underlying test: the training must be for your existing trade and for business reasons. Conversely, a cheap course might not be deductible if it’s taken mainly for personal interest or to move into a completely different career.

Think of it this way: the tax system is usually willing to support the costs of running and improving the business you already operate. It is usually less willing (or not willing at all) to subsidise the costs of acquiring a new “income-producing ability” that changes the nature of your business or enables you to start a different one.

This purpose-based approach is why two sole traders can take the same course and end up with different outcomes. A graphic designer who takes an advanced typography course is likely strengthening an existing service. A delivery driver who takes a course in web development might be building skills for a new trade. Same course? Maybe. Same outcome? Often not.

The key principle: training must relate to your existing trade

One of the most important ideas is that deductible training is usually training that maintains, updates, or improves skills and knowledge you already use in your current business. If you are already providing services as a sole trader, and the training makes you better, more current, or more compliant in delivering those services, that training often sits comfortably as a business expense.

Examples that commonly fall into this category include continuing professional development (CPD), refresher courses, regulatory training that is required to keep operating, and training that helps you implement changes in law, technology, or best practice relevant to what you already do.

In other words, training that supports your existing revenue-generating activities is typically easier to justify. Training that creates a new revenue stream or helps you switch professions entirely is much harder to claim, even if you plan to use those skills in the future for business.

Allowable vs non-allowable: the “upskilling” and “new trade” distinction

A helpful way to understand the boundary is to separate training into “upskilling” and “new trade” training.

Upskilling and maintaining professional competence

Upskilling is training that deepens or modernises what you already do. It may help you deliver the same service better, meet professional standards, keep pace with industry changes, or use new tools that are now standard in your work. This kind of training is often treated as a normal operating cost, similar to software subscriptions or professional membership fees.

For example, a self-employed photographer learning advanced lighting techniques, a freelance bookkeeper taking a course on updated accounting software, or a personal trainer doing a sports nutrition update to serve current clients more safely can each argue that their training supports the existing business.

Training that prepares you for a different occupation

Training that prepares you to enter a new line of business is usually treated differently. Even if you’re a sole trader already, the expense may be seen as capital in nature or personal investment because it creates a new skill set that is not part of the existing trade.

For instance, a self-employed hairdresser who takes a coding bootcamp to become a web developer is likely stepping into a different trade. A freelance writer who takes a course to become a qualified electrician is a dramatic change in occupational activity. These costs are commonly not allowable as deductions against the current trade’s profits, because they are not incurred for the purpose of the existing business.

What about broad business courses like marketing or bookkeeping?

Not all training fits neatly into “same trade” or “new trade.” Many courses are cross-functional: marketing, social media strategy, sales techniques, tax basics, project management, negotiation, and general business management. Whether you can claim them often depends on how you use them and how closely they support your existing work.

If the course is clearly aimed at running your current sole trader business more effectively, it can often be argued as deductible. A self-employed plumber taking a short course on small business bookkeeping to keep accurate records is likely improving business administration directly connected to the trade. A freelance designer taking a course on pricing strategy or client proposals could make a similar case.

But there’s a limit. Very broad “career change” programmes, full management degrees pursued for personal advancement, or long courses that reshape your professional profile may attract more scrutiny. The more the training looks like a personal qualification rather than a practical business cost, the harder it can be to justify as wholly business-related.

Professional qualifications and certifications: when can they be claimed?

Professional qualifications are a common grey area. Some qualifications are necessary to keep operating in your current trade, while others are stepping stones into a new professional status.

If a course is required to maintain a licence, registration, accreditation, or membership you need for your existing work, it is often a strong candidate for deduction. Renewals and continuing education are often easier to justify than first-time entry qualifications.

On the other hand, a first qualification that allows you to start practising in a regulated profession may be treated as the cost of entering that profession rather than operating within it. If you’re not already in that trade, it can be difficult to claim the cost against your current business profits.

However, real life is nuanced. Suppose you already operate in a field and the certification is an extension that builds on what you do rather than switching you to a different profession. In that case, the training might still be connected strongly enough to your existing trade. The closer the qualification is to what you already do, and the more it resembles professional development rather than reinvention, the more defensible it tends to be.

Short courses, workshops, conferences, and webinars

Short courses and workshops are among the most commonly claimed training expenses, especially when they directly relate to a service you provide. Conferences, webinars, industry events, and seminars can also be deductible if the content is relevant to your current business and the purpose is business-related rather than primarily leisure.

That said, the line can blur when events are held in attractive locations or include significant entertainment. If there is an identifiable personal element, you may need to apportion costs or be careful about what you claim. A sensible approach is to claim only the costs that clearly relate to business participation and be conservative with anything that looks like a holiday with a bit of learning attached.

Online courses and subscriptions: what you can usually claim

The growth of online learning has made training far more accessible, and it has also introduced new expense types. Sole traders often pay for online course platforms, continuing learning subscriptions, professional communities, and on-demand training libraries.

If you can show that the subscription is used for business-relevant learning, it can often be treated as a business expense. This is especially true when the subscription is clearly tied to your trade, such as a software developer subscribing to a platform for updated programming courses, or a digital marketer subscribing to analytics and advertising training resources.

It becomes harder if the subscription includes a wide range of personal-interest content and you cannot separate business use from private use. In that case, you may need to apportion or decide not to claim it at all. A practical rule of thumb is: if you would still pay for the subscription even without your business, it may be personal; if you pay for it because it supports your business work, it may be business.

Travel and accommodation for training: when are they deductible?

Training costs are not just tuition fees. Travel, accommodation, meals, and incidental expenses can also arise when you attend courses in person. Whether you can claim them generally depends on whether the course itself is allowable and whether the travel is for business purposes.

If the training is deductible and you travel specifically to attend it, then associated travel costs are often deductible too. This can include public transport, mileage (if you use your own vehicle and follow the relevant mileage rules), parking, and sometimes reasonable accommodation if an overnight stay is necessary.

However, if you combine training with a personal trip, you may need to split the costs. For example, if you fly to attend a two-day course but stay an extra five days for holiday, claiming the full airfare and accommodation could be difficult to justify. The more personal time dominates the trip, the more likely it is that only a portion of the travel costs (or none) will be considered business-related.

Even when the trip is mostly business, it is wise to keep evidence that shows the business purpose: the course booking, timetable, location, and details of why attendance was necessary for your work.

Equipment, books, and materials for courses

Training often comes with additional purchases: textbooks, workbooks, exam fees, software, equipment, or specialist tools. These costs can sometimes be claimed if they are necessary for the training and the training itself is allowable.

Books and learning materials used directly for business-related education are commonly treated as expenses, especially when they have a short useful life or are consumed in the course of learning and work. Software purchased to complete course assignments may be deductible if it is also used in the business.

Equipment is more complicated. If you buy a laptop or a camera or other durable item primarily for your business, the tax treatment may depend on whether it is considered a capital asset and whether you need to claim it through capital allowances or depreciation rules rather than as an immediate expense. Even then, private use may require apportionment.

A sensible approach is to identify whether the purchase is genuinely for business use beyond the course. If it is a lasting business tool, treat it as such and record it accordingly. If it is an incidental cost consumed by the course, it may fit more naturally as a training-related expense.

Training that is partly business and partly personal

Many courses have a mix of business and personal elements. For sole traders, the general tax theme is that an expense must be incurred wholly and exclusively for business to be fully deductible. If you can reasonably split the cost between business and private use, you may be allowed to claim only the business portion.

For example, imagine a self-employed wellness coach takes a course that includes both business strategy modules and personal self-development content. If the provider gives an itemised invoice or clear breakdown of modules and costs, you might be able to claim only the business-relevant part. If there is no breakdown and the course is inseparable, the tax authority may treat it as a single expense, which could make it harder to justify.

Apportionment should be done on a reasonable basis, with supporting evidence. The key is consistency and defensibility. “Half for business” with no rationale rarely looks convincing. A time-based split (hours spent on business modules versus personal modules) or a provider’s itemisation tends to be more persuasive.

Common examples: what sole traders often can claim

To make the principles more tangible, here are examples of training expenses that are commonly claimable when they relate clearly to the existing trade:

1) Continuing professional development required by a professional body to remain in good standing.

2) Refresher training for health and safety, safeguarding, or compliance relevant to your services.

3) Training on new software or tools you use for client work, bookkeeping, scheduling, design, editing, or analysis.

4) Workshops improving technical skills within your trade, such as advanced carpentry techniques for a carpenter or new treatment techniques for a beauty therapist.

5) Short marketing or sales courses aimed at running and growing your existing sole trader business.

6) Conferences and seminars where the content is relevant to your current services and you attend for business development.

Common examples: what sole traders often cannot claim

Here are examples that are frequently not allowable, because they are seen as personal or as creating a new trade:

1) Training that qualifies you to enter a new profession you were not previously operating in.

2) Courses taken mainly for personal interest, hobbies, or general self-improvement without a clear business link.

3) Programmes that are more like a career change plan than an update of existing skills.

4) Training with substantial personal benefit that cannot be separated from the business element.

5) Education costs incurred before the business begins trading, where the expense is more about preparing to start than running an existing business.

Start-up phase training: can you claim courses before you begin trading?

Many people take training before launching as a sole trader. They might learn the basics, complete certifications, or build confidence. This is a sensible business move, but the tax treatment is often strict.

Training undertaken before you start trading is frequently treated as non-deductible, because it is not incurred in the course of carrying on an existing trade. The logic is that you are preparing to start, not operating. Some systems may allow certain pre-trading expenses if they would have been deductible had the business been trading and if they were incurred within a certain period before commencement, but training is often scrutinised more heavily because it can be seen as creating the ability to trade.

If you are in the early stages, it can be helpful to separate “learning to be in the trade” from “learning to run the business.” A short bookkeeping course might be easier to connect to the operational side, while a major qualification that makes you eligible to practise could be treated as entry into the trade. The best approach is to keep careful notes on the purpose of the training and be realistic about how it will be viewed.

How to justify a training expense if you are ever asked

Even if you never face a formal review, it helps to record your reasoning while it is fresh. If a tax authority questions a training expense, they are likely to ask: how does this course relate to your business? What problem was it solving? What skills were you updating? How did it support your current income-generating activities?

Good justifications are specific. “This course makes me better at my job” is less persuasive than “I provide X service to clients; this course covered Y technique/software/regulation that I apply in client work and was necessary to maintain standards and deliver the service.”

It also helps if your business activity before and after the course looks consistent. If you claim a course as an expense for your current trade, but you immediately stop that trade and begin an entirely different one, the claim may look like the cost was really about a transition. Of course businesses evolve, but the closer your narrative aligns with your actual work, the stronger your position is.

Record keeping: what you should keep as a sole trader

Training expenses are only as strong as the paperwork behind them. At a minimum, keep:

1) The invoice or receipt for the course fee, showing the provider, date, and amount.

2) Proof of payment, such as a bank or card statement entry.

3) The course description or syllabus, ideally saved as a PDF or screenshot at the time you enrolled.

4) Emails or confirmations showing your booking and attendance.

5) Notes on how the course relates to your current business services, including any client work that benefited.

6) If you claimed travel or accommodation, keep tickets, mileage logs, hotel invoices, and an itinerary showing the training schedule.

This might feel like overkill, but it is much easier to gather evidence at the time than to reconstruct it months or years later. Clear records also help you separate business expenses from personal costs so your accounts remain accurate.

How to categorise training expenses in your bookkeeping

Most sole traders find it easiest to track training under a dedicated category such as “Training,” “CPD,” or “Professional Development.” This keeps it visible and makes it simpler to review at year-end. If you mix training costs into general expenses, you may forget what something was for and lose the ability to justify it later.

If a course includes multiple components (for example, training plus software plus membership), you may need to split the expense across categories. If it includes VAT or sales tax considerations in your jurisdiction, record the tax element appropriately. The more accurate your categorisation, the easier it is to produce clean accounts and avoid accidental over-claims.

What if the course leads to higher income or new services within the same trade?

Sometimes training doesn’t just maintain your current services; it expands what you offer within the same general trade. For example, a freelance videographer might learn drone filming, or a massage therapist might add a specialised technique. Is that a new trade, or an extension of the existing one?

Often, it depends on how close the new service is to what you already do, and whether it is a natural progression within the same professional area. If clients already hire you for closely related services, and the new skill simply extends your toolkit, the training may still be seen as part of the existing trade’s development.

But if the training moves you into a distinct, separately identifiable profession, it may be harder to argue. The more it looks like a “step change” rather than an enhancement, the more cautious you should be. Consider how you present your business publicly: your website, branding, invoices, and service descriptions can all influence whether your activities look like one evolving trade or multiple separate trades.

Mixed-use training providers and “all-you-can-learn” memberships

Many platforms offer huge catalogues: business, hobbies, fitness, creative arts, and more. If you subscribe and use it partly for business learning and partly for personal interest, you may face a mixed-use issue.

Where possible, keep evidence of business use. Some platforms show learning history, completion certificates, or time spent on modules. If you can demonstrate that most of your usage is business-related, it can support your claim. If you dip in occasionally for work but mainly use it for personal interest, it becomes harder to justify as a business expense.

A cautious approach is to claim only the proportion you can support. Another is to use a business-only subscription or account, reserved for training directly tied to your trade, which makes the business purpose much clearer.

Coaching, mentoring, and mastermind groups

Not all “training” is delivered as a course. Many sole traders invest in business coaching, mentoring, or group programmes aimed at improving business performance. These can be deductible if they are genuinely for business and not mainly personal development.

Business coaching that focuses on pricing, systems, marketing, client management, or strategy for your existing trade is often easier to justify than coaching that is primarily about personal transformation. Again, documentation helps: a clear programme outline, coaching agreement, and session notes showing the business topics covered can strengthen your position.

Be mindful of programmes that blend business coaching with lifestyle components, retreats, or significant leisure elements. If the personal benefit is substantial and inseparable, it may weaken deductibility.

What to do if you’re unsure: practical decision checks

If you’re uncertain whether a training cost is claimable, these checks can help you make a reasonable judgement:

1) Does it relate to your current trade? Can you explain how the training supports the services you currently provide?

2) Is it maintaining or improving existing skills? Or is it giving you a fundamentally new professional capability?

3) Would you take it if you weren’t running this business? If yes, it may be personal. If no, it may be business-driven.

4) Can you evidence the business purpose? Do you have a syllabus, invoice, and notes linking it to your work?

5) Is there a personal element? If there is, can you split the cost on a reasonable basis?

These checks don’t replace professional advice, but they do help you think like a reviewer. If your answers are clear and well-evidenced, you’re usually in a safer position than if the course is loosely connected and poorly documented.

How training expenses interact with other deductions

Training rarely sits alone. You might pay for software to complete course work, upgrade equipment, or travel to events. It’s important to treat each cost correctly rather than bundling everything together and calling it “training.”

For example, if you attend a course and buy a new laptop, the course fee might be a straightforward training expense while the laptop could be a capital purchase with different tax treatment. If you travel to a conference, the conference ticket might be deductible, but personal sightseeing tours might not be. Separating these items and keeping each receipt distinct makes the overall picture clearer.

Examples by industry: how the same rules play out differently

Freelance designer: Courses in new design software, typography, branding strategy, UX basics, or accessibility guidelines often relate closely to existing services. A course in becoming a qualified accountant may not.

Self-employed tradesperson: Training on new regulations, safety standards, or techniques within the trade is typically more defensible. A course to become a real estate agent is likely a different trade.

Coach or consultant: Training in a specific method you already use with clients may be connected to current services. A broad personal transformation retreat with limited business content may be questionable unless clearly structured as business development.

IT contractor: Certifications or training in technologies you use in contracts are often easier to justify. Training to move into a wholly different field might not be deductible against current IT income.

Health and wellness professional: CPD, compliance, and skill updates that enhance current services often fit. Training that qualifies you for a new regulated profession could be treated as entry into a new trade.

How to write a simple “business purpose” note for your records

A quick note saved with your receipt can be extremely helpful. You don’t need an essay. Two or three sentences can do the job, such as:

“I took this course to improve my [specific skill] used in delivering [service] to clients. The modules covered [tool/technique/regulation] which I apply in client projects and was needed to stay current with industry standards.”

If the course is required for compliance or membership, say so. If it helps you use a tool you already pay for, say that too. Specificity is your friend.

Red flags that often cause problems

While every case is different, certain patterns tend to trigger more questions:

1) The course looks like a stepping stone into a new profession rather than an update of existing skills.

2) The training is very broad, very long, or linked to personal advancement rather than day-to-day business needs.

3) The expense is incurred before the business begins trading and looks like initial education rather than operational cost.

4) There is a significant personal or leisure element, especially with travel to appealing destinations.

5) There is little evidence of how the training connects to the business.

If any of these apply, it doesn’t automatically mean you can’t claim, but it does mean you should be more careful and consider professional advice.

Claiming training costs in practice: getting it right without overreaching

Most sole traders want to do the right thing: claim what is legitimate, avoid trouble, and not leave money on the table. The best approach is a balanced one. If a course clearly supports your existing work, claim it and keep good records. If a course is more about changing direction or has a big personal element, be cautious and consider whether it should be treated as a personal investment instead of a business expense.

When in doubt, it can help to imagine explaining the expense to someone who doesn’t know you. Could you clearly show how the course supports your current business and how it was undertaken for business reasons? If yes, you’re likely closer to the allowable side. If the explanation relies heavily on future intentions, vague benefits, or personal growth arguments, it may be weaker.

Final thoughts: can sole traders claim training and course costs?

Yes, sole traders can often claim training and course costs as expenses, but the training must normally relate to the existing trade and be undertaken for business purposes. Courses that update or improve skills you already use, maintain professional competence, support compliance, or strengthen the operation of your current business are commonly the most defensible. Training that prepares you for a different career or creates an entirely new professional capability is commonly not deductible against your current sole trader profits.

The safest way to approach training claims is to focus on relevance, keep clear records, and be prepared to explain the link between the course and your current income-generating work. If a course sits in a grey area, consider splitting business and personal elements where reasonable, or seek tailored advice so you can claim confidently and correctly.