Discount on Company Product Taxable?

[chrubble]

Hi,

My employer is an online academic education provider, and as an employee I am entitled to a 70% discount if I pay to take one of our own courses part-time.

The standard cost of the course is £23,350.00 but I would pay around £7,000.00 if I paid up front for what would be between 5-7 years of modules, part-time as I say. There are more expensive payment options to split the costs over time (still benefiting from a 70% discount on what a standard student would pay).

Am I liable to tax on the discounted element of the course as a benefit in kind, simply as a company product? Is there any difference if I class it as career training that I am paying for with a company subsidy?

Many thanks,

Jeremy

[mullet]

This will turn on the principle of marginal cost. As long as you pay more than the cost of the product to your employer, then there is no taxable benefit. If what you pay doesn't cover the cost, then you will be taxed on the cost to the provider less any amount made good by you.