Changes in the law have rendered this article obsolete. See our article Monument and education deductions not abolished after all.
One of the objectives of the 2017 Tax Plans is simplification. The best and simplest way to achieve this is to abolish schemes. In addition to the deduction of costs relating to listed buildings In this context, the tax relief on training expenses will also have to go.
Training costs
The costs of a course or study programme aimed at a (future) profession are deductible as training expenses. There is no entitlement to a tax relief on these costs student finance. The deduction for education expenses covers only the costs of the taxpayer’s own education.
The course or programme of study must be aimed at changing the taxpayer’s economic position, or at improving or maintaining their existing knowledge. The improvement or maintenance of that position must also be reasonably achievable. The costs of a course undertaken purely as a hobby are, of course, not deductible.
This tax deduction forms part of the personal allowance and must be claimed on the income tax return.
Threshold/maximum
A threshold of €250 and a maximum of €15,000 apply to the deduction of training expenses. Only actual costs incurred by the taxpayer may be deducted.
Abolished
The scheme will be with effect from 1 January 2018 abolished. Research has shown that the deduction is rarely claimed and that those who do claim it are relatively highly educated. Furthermore, the scheme is difficult for the tax authorities to administer.
A new scheme is to be introduced in the form of training vouchers. These are intended for people who are less likely to undertake training of their own accord. As it will take some time to finalise the details of this scheme, the tax deduction for training expenses will be abolished in 2018 rather than 2017.