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MBA Degree Apprenticeship BIK?

If I take advantage of a degree apprenticeship to study am MBA is there a BIK for tax?

I have a micro business providing strategic IT consultancy.  I'd like to improve the services my company offers through studying for an MBA part-time.  The consultancy services my company provides are around IT strategy and data management. The material taught on an MBA would be highly relevant to my business.  

The recent degree apprentice changes mean that my company could receive a government grant towards the costs, of up to £18,000.  The cost of the MBA would be around £26,000, leaving an £8,000 short fall to make up.

I'd like to understand the tax implications of doing this. E.g.:

  • Is there a personal BIK for me? If so, would this be for the total £26,000?
  • Is this expense treated as training?
  • Would it matter if my company paid the £8,000 short fall or I paid it personally?

Thanks, Andy

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30th Nov 2018 14:22

Who gets the MBA? You or your company?

In my firm, we're accountants and not IT experts. When we have IT issues, if it's something nice and simple we might ask a question on an online forum but generally, for anything with real financial impact, we hire in an IT specialist and pay them for their help.

It is probably the case that any money your company pays for you personally to obtain a degree will be a BIK but I would suggest asking an actual accountant who knows you and your business as to what your best approach is.

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