Tax & European Social Fund basic skills training project £2400 cash incentive

Tax & European Social Fund basic skills...

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Hello,
 
My client (Limited Company) has received a £2400 cash incentive from the European Social Fund basic skills training project to compensate for allowing staff time to train towards a basic maths and english qualification.
 
My questions are:-
 
What is the Corporation Tax position for the company? 
 
The third party who facilitated this cash incentive has told the client that he can pay £400 to each employee who has received the training and has indicated that this should be tax free. My understaing is that the incentive was paid to the company so any amount that the company chooses to pay to the employees will need to be treated as additional gross pay. Is this correct?
 
Many thanks

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