I've registered a UK limited company which is going to sell online language courses. Can I claim back in expenses costs of my university degree, if the degree is highly correlated with what my company deals with? I study Applied Linguistics (languages). I have also heard that in the UK it is possible to claim back costs from up to five years ago - is that true?
In the US, education expenses that would be required for your business (such as a university degree) are not normally deductible.
From IRS Publication 535:
Of course, the info in IRS Publication 970 (page 37) seems to contradict this:
And lastly, this is in the US, not the UK, so I realize this is no help :) But hopefully this will serve as a stub of research for someone that knows the correct answer.
I am in the UK and my view is as follows:
The degree is giving you an asset of enduring benefit to the business so the costs are capital and disallowable. Where you have to do continual improvement or pay subs each year (in the case of Professional Quals) then they are allowable.
You can claim for certain expenses pre-inception but they have to be allowable in the first place.