The second in our tax tip mini-series is somewhat more specific, but can exempt up to £15,000 per year from tax. Just to recap, our mini-series covers:
Employee training – allowances for full-time study
If you sponsor a student, or release an employee for full-time study at a university or similar educational establishment, the amount you pay them is exempted from income tax up to £15,000. The following criteria must be met:
- They must be studying a course full-time for at least one year.
- The course must be at a recognised educational establishment.
- They must attend the course for 20+ weeks a year.
The £15,000 includes all lodging, subsistence and travel costs, but excludes tuition fees. So if you are sponsoring students or providing bursaries as part of your recruitment, or are looking to train up members of your staff, don’t forget this handy tax tip!