Upskilling and Tax Relief for Independent Contractors

With the back-to-school season in full swing, it’s not only students who should be sharpening their skills. As an independent contractor, staying ahead in your field often means refreshing your knowledge, gaining new qualifications, or developing niche expertise to support your contract role.

The good news? Upskilling can be tax efficient. If you take on training directly related to your current contract (or to the services your company provides), the cost of that course may qualify as a business expense — meaning you can claim tax relief and reduce your overall tax bill.

When Can Training Be Claimed?

To be eligible, the course or programme should:

• Be relevant to your current contract or role.
• Be clearly linked to your business activity (not just a personal interest).
• Be completed within the timeframe of your contract.

If these boxes are ticked, training can usually be claimed as a deductible business expense through your company.

 What About Broader Education?

If the course isn’t directly linked to your current contract but is an approved third-level course, you may still be entitled to tax relief on tuition fees through your income tax return.

• Relief is given at 20% of qualifying tuition fees, subject to certain limits and exclusions.
• This can apply to both full-time and part-time study.

��️ Record-Keeping is Key

If you’re planning to claim training costs as a business expense:

• Make sure invoices and receipts are in your company’s name.
• Keep notes on how the training supports your contract role.
• Always retain records in case Revenue seeks clarification.

This September, while the kids are packing schoolbags, it might be the perfect time to pack your own toolkit with fresh skills and qualifications. Better yet, with the right approach, the cost of upskilling can be offset against tax — making it a smart move for your career and your pocket.

If you’re considering a training course and aren’t sure if it qualifies, reach out to the Icon Accounting team — we’ll make sure you get the full benefit.