This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Staff Training

Jambo55
Posts: 131
Joined: Wed Jun 23, 2010 5:54 pm

Staff Training

Postby Jambo55 » Wed Jul 06, 2016 8:06 am

Morning All,

I have a member of staff who has requested a training course - it IS related to his role and will undoubtably help develop his skills and how effective / efficient he is for the company.

My question is; if the company pays for this training course (cost is c£1,000) will it be tax deductible for the company and will the employee be taxed on this as a benefit in kind?

Thanks in advance! JmB

jpcentral
Posts: 924
Joined: Wed Aug 06, 2008 3:28 pm
Location: Loughborough
Contact:

Re: Staff Training

Postby jpcentral » Wed Jul 06, 2016 1:42 pm

The general principle is that training for staff is a deductible expense and doesn't constitute a benefit in kind.

It might be worth your while making an agreement that should the employee leave within (say) one year of completing the course, the cost of the course is refundable. Whether or not this could be enforced is debatable but it will usually make the employee think twice.

The exception to the general principle is if the employee is a connected person. You can't, for example, employ your son/daughter and pay for a university course for them. If the employee can be construed as being connected you must be certain that the course is relevant to the work they are doing.
John Perry
Central Business Services
Loughborough
http://www.centralbusiness.co.uk


Return to “Company Taxation”