Tax on training fees after leaving company

[JacklMast]

Hi everyone,

I'm looking to leave my current company and enter a new role with a new organisation.

I have a contract which states, if I leave within two years of completing the course I recently completed, I need to repay the course fee.

This is £18,000. I have recently been told that this will be £18,000 plus Vat. Firstly, is this correct?

My second question is; As my new company are going to cover this cost, they said they will give me a sign on bonus for this amount. As I would pay income tax on this, I assume this would mean they would need to give me the £18,000 plus the vat plus 40% (income tax). This puts the fee from £18,000 to in the region of £45,000!

Could my current employee invoice my new employee, thus cutting out the income tax? My new employee can then claim back the VAT.

Many Thanks

[JacklMast]

In regards to my last point, on further thought, this would not be possible.

The contract is between me and my current employer and therefore the new employer cannot assume responsibility.

[RMC]

VAT: Ask to see the invoice.