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    • sigru009
    • By sigru009 15th Mar 17, 11:14 AM
    • 13Posts
    • 3Thanks
    Higher education fee paid - For higher tax earning bracket
    • #1
    • 15th Mar 17, 11:14 AM
    Higher education fee paid - For higher tax earning bracket 15th Mar 17 at 11:14 AM

    For the tax year - 2016/2017 - My current employer has paid 2,500 in higher education fees for me but since I am set to leaving the company on 31-Mar-2017 - that 2,500 would be deducted from my final payroll (as per the company training agreement)...

    My employer has told that the 2,500 would be deducted on Net pay, so when I do complete my self-assessment for this tax year - Can I reclaim tax (40%) on that 2,500 or no?

    My income is currently 50k+ and hence is on higher tax bracket..

    Any advice would be great

Page 1
    • uknick
    • By uknick 15th Mar 17, 2:02 PM
    • 760 Posts
    • 344 Thanks
    • #2
    • 15th Mar 17, 2:02 PM
    • #2
    • 15th Mar 17, 2:02 PM
    For training costs to be tax deductible as an employee they have to be wholly, exclusively and necessarily for your job.

    Therefore, training costs are generally not deductible for tax purposes as it is difficult to meet all three of these conditions.

    However, if you were required to do the training as part of your employment contract/job description there may be scope for tax relief. The case law on this refers to jobs such as Registrar training posts within the NHS.

    If the training wasn't job related, did you pay tax on them as a benefit in kind? If you did, this should be adjusted for when your employer completes your P11D and HMRC catch up as part of their PAYE year end process.
    Last edited by uknick; 15-03-2017 at 3:18 PM.
    • sigru009
    • By sigru009 16th Mar 17, 11:47 AM
    • 13 Posts
    • 3 Thanks
    • #3
    • 16th Mar 17, 11:47 AM
    • #3
    • 16th Mar 17, 11:47 AM

    I wouldn't know about the P11D inclusion because it was paid in Sep-2016 and since I have left within the same tax year - it was deducted out of net pay in the last payroll (Mar-17) - all within the same tax year 2016/17....

    I would complete self-assessment thou' as I contribute more for my pensions and hence I reclaim the higher earner tax on wondering if this higher education is tax refund eligible - from the looks apparently not..

    Thanks v much for your speedy response

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