Self improvement training fees

Carole Registered Posts: 57 ? ? ?
Hi all MIP's

I posted this in members but didn't get much response so I thought MIP's might have a better knowledge of this.

An employee is paying for his own HNC course via a student loan. As his employer we receive a Construction Industry grant because he is attending a training course. We would like to pass on this grant to our employee to help with his fees.

Do I need to put this through PAYE or can we pay it to him gross?

Any ideas appreciated.

Thank you


  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Hi Carole,
    I am not familiar with this but to receive the Grant, isn't the employer suppose to meet the cost of training in the first place? In which case it would just be a case of the employee claiming the cost of training and being reimbursed by the employer, and no taxable benefit in kind would then arise?
    Am I missing something?
  • Carole
    Carole Registered Posts: 57 ? ? ?
    Its quite bizarre, but no we don't have to pay the fees to receive the grant. Its because we pay the Construction Industry Training Board a LOT of money each year in subscriptions we receive the grant. He wants to pay the fees himself because of the student loan.
  • Dcollins
    Dcollins Registered Posts: 179 ? ? ?
    Training linked to employment is not taxable, so I would pay it to him gross. Ask him to complete an expenses form and attach a copy of the invoice he's paid. Then just check that the training is covered by your dispensation (or look into getting a dispensation if your company doesn't have one).
  • Carole
    Carole Registered Posts: 57 ? ? ?
    Thank you, yes that makes most sense.
    We have a dispensation for employees.

    Now its time to get out into the sun for the bank holiday weekend!!
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