School fees

Copyright © 2026 LexisNexis
Produced by Tolley in association with Philip Rutherford
Employment Tax
Guidance

School fees

Copyright © 2026 LexisNexis
Produced by Tolley in association with Philip Rutherford
Employment Tax
Guidance
imgtext

The payment of a child’s school fees on behalf of an employee is an uncommon benefit. Unlike the provision of childcare, or the award of scholarships, there is no general exemption in place for the payment of school fees.

Introduction

The payment of school fees on behalf of an employee is treated as though the employer has settled a pecuniary liability of the employee. This determines the tax, NIC and reporting requirements associated with the payment. For further details on pecuniary liability, see the Contractual and pecuniary liabilities guidance note and Simon’s Taxes E4.420A.

Reimbursement of school fees

Employee pays the school fees and is reimbursed for these by the employer

The first example is where an employee pays for the school fees and the employer reimburses part of all of the fees in question.

In this case the amount reimbursed is treated as earnings.

Employee contracts with the school and the employer pays the fees

In this case, the employee enters a contract with the school directly and the employer pays either some or all

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties.   Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

Read moreRead more
Powered by Tolley+™
  • 09 Jul 2024 11:51

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Personal Tax

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2025
Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more Read more