Work related training costs - Taxation

Work related training costs - Taxation

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Hi,

I have an interesting question from a client concerning worked related training costs deducted from his net salary.

 

The client was required by his company to undertake training for a technical certification with a partner company, so his company would continue to receive substantial discounts for stock purchases. The company paid for the cost of training, the examination, travelling and accommodation expenses. The client now wishes to leave the company and is being forced to repay the full cost of training including incurred expenses and examination fee as stated in his contract.

The training costs have been deducted from his net salary and he believes as the training costs were incurred on behalf of the company he should be able to claim tax relief on the training expenses.

 

I fully understand that personal training is not eligible for tax relief, but if work related training is undertaken for a company and paid for by the company, but is then deducted from an employee's net salary when leaving the company (effectively being paid for as a personal training costs) does the training costs become eligible for tax relief?

Your thoughts please.

Regards

K

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By Richard Willis
29th Sep 2011 09:11

Not a tax expert but...

my immediate reaction is that what he paid was NOT for training (which may be of no use to him anyway) but merely compensating his ex employer for a financial loss.  Whether this is deductable I am not sure but I guess it is.

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