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Educating employees
Payments made by employers to employees for periods of attendance at a full-time educational course (including sandwich courses) at a recognised academic establishment may be treated as being exempt from income tax where certain conditions are met. See Statement of Practice 4/86 'Payments made by employers to employees when in full-time attendance at universities and technical colleges'.
Educating employees
Payments made by employers to employees for periods of attendance at a full-time educational course (including sandwich courses) at a recognised academic establishment may be treated as being exempt from income tax where certain conditions are met. See Statement of Practice 4/86 'Payments made by employers to employees when in full-time attendance at universities and technical colleges'.
One of the relevant conditions is that payments in respect of an academic year must not exceed a specified financial limit. That limit has been set at £15,000 since the beginning of the 2005-06 academic year. For the 2007-08 academic year and subsequent academic years the limit is increased to £15,480. The statement of practice has been revised to reflect this increase.
The increased limit will also apply for the purposes of disregarding relevant payments from the calculation of earnings for National Insurance contributions purposes.
www.hmrc.gov.uk
