Investing in your skills is essential as a freelancer — and most of the time, it's tax-deductible too. But HMRC draws a crucial line between updating existing skills (claimable) and learning entirely new ones (not claimable).
The Key Rule: Updating vs New Skills
This is the most important distinction:
- Updating or maintaining existing skills = CLAIMABLE. A web developer learning React (a new framework in their existing field) can claim the course cost.
- Acquiring new skills for a different trade = NOT CLAIMABLE. A web developer training to become a plumber cannot claim the plumbing course.
The logic is that training which keeps you effective in your current trade is a business expense, while training for a completely new career is a personal investment.
What Training Costs Can You Claim?
- Courses to update skills: Online courses on platforms like Udemy, Coursera, LinkedIn Learning, Skillshare — provided they're relevant to your current work.
- Industry conferences: Ticket price, travel to/from the conference, accommodation if overnight.
- Professional books and journals: Technical manuals, industry publications, trade magazines.
- Workshops and seminars: Both online and in-person, relating to your field.
- Professional certification renewal: Maintaining certifications needed for your trade.
Example: Training Costs for a Freelance Developer
| Expense | Amount |
|---|---|
| Online courses (Udemy, Pluralsight) | £200 |
| Industry conference ticket | £300 |
| Conference travel and hotel | £350 |
| Technical books | £80 |
| Professional certification renewal | £150 |
| Total claimable training expenses | £1,080 |
At the 20% basic rate, this saves £216 in income tax.