ATSCo urges DTI to allow tax offset for contractors' training

The Association of Technology Staffing Companies has recommended that independent contractors should be able to offset training expenses against tax in an incentive to help ease the UK skills shortage.

ATSCo is proposing the Department of Trade and Industry allows the tax offset to enable contractors to develop their careers through 'technical training, management skills development, proposal writing courses and 'soft' skills courses.' They hope this will encourage IT workers 'to enhance their expertise at the cutting edge of developments.'

The Association estimates that the training costs to contractors for keeping abreast of new developments in emerging areas could be 'more than £5,000 per year.'

ATSCo believes the incentive 'could also encourage those contractors who are working or seeking work overseas to stay in the UK as easier access to ongoing training can offer them enhanced employment and career development. Additional training in the UK would also make a substantial difference in the areas where skills shortages are at their most critical,' they say.

Addressing the ongoing benefits divide between contractor and employee, ATSCo states: ’Contractors will be at a significant disadvantage compared with those in employment whose employers pay training and get the cost deductible against their own corporation tax.'

Anne Swain - ATSCo's Executive Director, recently made her concerns over training for contractors known at a recent debate on IR35 and the Employment Agencies Act.

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Richard Powell, UKTECH