The cost of failure

I am aware that the cost of obtaining a professional qualification is regarded by HMRC as disallowable capital expenditure on the ground that it obtains an enduring advantage for the business. But what about the cost of not getting a qualification?

I am advising a driving instructor who failed his instructor’s exam several times incurring entry fees and training costs each time.

It is clear that failing the exam did not confer any advantage on the business enduring or otherwise and the entry fees and training costs were undoubtedly wholly and exclusively for the trade.

He was teaching pupils and earning money as a provisionally licensed instructor during the whole of this period. Is there any mileage (sorry!) in claiming these costs as revenue expenditure?

I can see that HMRC might well argue that the total cost of all the courses together constituted a single capital expense...