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Level 5 management diploma - tax deductible

Level 5 management diploma - tax deductible

Would the above be viewed as skills up - date? My client is a senior manager in his company and he is considering financing his own certificate. He believes that his work would benefit from the training.

We are also looking into the possibility of his employer financing it and then deducting the cost from his salary. Would this be tax efficient?

Thank you in advance for your posts.


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09th Jan 2012 13:32

Get employer to pay

He's an employee and so can't claim training expenses that he incurs personally as a deduction. 

If the employer finances it, it won't be taxable as a benefit, as it will be exempt under the work-related training provisions.

One exception to the the work-related training exemption though is if the purpose of the training is "rewarding the employee for performing the duties of the employment", ie it is remunerative.  Entering a formal salary sacrifice arrangement would be indicative that the purpose of the training is remunerative, which would cause it to be taxable.

A formal salary sacrifice (or a simple deduction from pay) would also have the consequence that VAT would be chargeable on the sacrifice/deduction amounts, ultimately negating any VAT advantage.

Best way forward would be to informally accept a reduction in salary while undergoing the training.  He would then have to rely on the employer reinstating a higher salary at the end of the arrangement.

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By honesty
09th Jan 2012 13:40


for your response. I now know how to move forward with this matter.

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