Staff training and courses

Copyright © 2026 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Staff training and courses

Copyright © 2026 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Staff training and courses are a common benefit provided by employers to their staff. There are various ways in which staff training can be provided free of tax and NIC.

Work-related training

An exemption from tax and NIC for work-related training is provided by ITEPA 2003, ss 250–254 and SI 2001/1004, Sch 3, Pt VII, para 2. The exemption applies to both the costs of work-related training and related costs.

This exemption does not give employees tax relief for the costs of self-financed training where the cost of the training is not reimbursed by the employer. Self-financed training is addressed later in this guidance note.

HMRC guidance is at EIM01210 onwards. See Simon’s Taxes E4.737.

How does the method of provision of work-related training affect the exemption?

Where the exemption applies, the method of provision is not important. It is exempt whether it is provided:

  1. •

    as a benefit (ie where the employer provides the training themselves, or contracts and pays a third party to do so), or

  2. •

    as a reimbursement of expenses where the employee

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
Powered by Tolley+™
  • 12 Jan 2026 12:00

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

Popular Articles

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more