Tax break hole for top-level training

IT professionals are missing out on tax breaks for training, almost two years after the scandalous collapse of the Individual Learning Account (ILA) scheme.

Before the introduction of ILAs in 2000, individuals could claim back money on training under the Vocational Tax Relief (VTR) scheme.

But when the learning accounts system was abandoned in 2001, incentives for individuals on private courses were not reintroduced.

Despite concern about a future skills shortage, anyone wishing to learn or upgrade skills outside the workplace still has to pay VAT and meet the full course costs from their taxed income.

The Skills Strategy published by the Department for Education and Skills (DfES) last month ranks basic IT proficiency as a necessity alongside reading and writing (Computing, 10 July).

While the emphasis on everyday IT skills is welcome, there is no incentive to develop professional expertise, says Liberal Democrat education spokeswoman Baroness Sharp of Guildford.

'While the government is introducing a whole lot of incentives to employers, the incentive to the individual has not been reintroduced,'she said.

'We have lots of people doing introductory courses and training up to NVQ level two at further education colleges, but the real shortage is of IT professionals doing the specific training courses graded at NVQ levels three and four, and we need more people trained up to those levels.

'I'm anxious to see people encouraged to invest in upgrading their own skills.'

The DfES says there is no need to re-introduce VTR because there are enough measures in place or in the pipeline.

The Skills Strategy includes plans for funding training at higher levels in priority sectors, which could be worth more than VTR. But the sectors that qualify will not be decided until next year.

Karen Price, chief executive of skills council eSkills UK, said: 'One of the main things eSkills UK needs to do is ensure the priorities of our sector are articulated well.

'The door isn't shut on funding for higher level training, and what is available may be greater than previous tax relief provisions.'