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Where Taxpayers and Advisers Meet

Employer pays tuition fees - tax treatment

Dave-A
Posts:134
Joined:Wed Aug 06, 2008 4:10 pm
Employer pays tuition fees - tax treatment

Postby Dave-A » Fri Feb 23, 2018 10:06 am

Dear all,

My firm will reimburse third year tuition fees to an employee. His course is work related under ITEPA2003. He is curently working for us during his gap year and will still be payrolled by us via a small monthly retainer whilst he completes year 3. I understand there are no tax consequences.

However, we want to reimburse the fees direct to his student loan account after he returns, paying a sum per month, say £300, into his student finance account. The intention is that we will do this for as long as he's employed by us and up to the limit of £9,000 for the year 3 charges. Thus if he leaves for another employer we won't have stumpted up a load of money for nothing.

Do you think the payments will still continue to be tax-free for him, and be a deductible expense for us?

Thanks and regards,

Dave-A

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Employer pays tuition fees - tax treatment

Postby RMC » Sun Mar 04, 2018 10:24 am

ITEPA 2003 s.250 mentions (I quote) “the payment or reimbursement to or in respect of an employee of” tuition fees for work-related training. It should not matter whether payments are made a college etc., to the employee on presentation of an invoice, or to the Student Loan Company.


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