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Can training costs clawback be deducted before tax

An employee has resigned, there was a training clawback, can this be deducted before tax?

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The training was a top up degree directly relating to the job role. The employee has to pay back 2/3rds of the cost per his contract. Can this be taken before tax as it is work related training?

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21st May 2019 16:40

Was it wholly, exclusively and necessarily incurred ?

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to lionofludesch
21st May 2019 16:49

...IN THE PERFORMANCE of....

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21st May 2019 16:52

What does the contract say about how the clawback is recouped?

This is a recurring question on here. Few contracts appear to be clear whether the deduction is from gross or net.

That said, if the contract actually says "pay back" then it might not be possible to deduct it from pay at all. Paying something back and having your wages reduced are not the same thing.

Depending on the amounts involved some legal advice may be in order.

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to stepurhan
22nd May 2019 10:26

Thank you for your response, the contract uses the word reimburse. Here is a section of the contract: 'In the event that an employee leaves our employment voluntarily they will be require to reimburse the Company in accordance with the following: Second year from completion 2/3 course fees.
The company reserves the right to deduct any outstanding balances from final salary/wage payments'

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21st May 2019 16:54

If it says "pay back" it's probably a loan.

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21st May 2019 16:56

No matter how recurrent the question, the answer is always the same. It is being recouped out of pay.

The pay out of which it is being recouped is taxable and NIable earnings. The work-related training exemption applies only to the unrecouped expense.

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