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Where Taxpayers and Advisers Meet

Staff Training

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

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

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

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