Claming Tax back on Fees paid back to Employer when I left the Company

P

Polly 123

Frequent Poster
Messages
50
Hi all, I have checked previous threads but they are back in 2010 so I'm sure the taxation system has changed since then, I've also contacted Revenue but having no luck with getting a reply so hoping someone here might be able to provide guidance.

I completed a 2 year post grad course paid by my Employer as the fees became payable. In return I owed them 2 years service or a clawback if I left the company. I left earlier this year 5 months post completion of my course so they worked our I owed 19 months, I repaid them over 7k then and the balance is due to be paid before end of December 2026.

I'm trying to work out if
(a) I can claim tax relief at 20% on the amount I am repaying to my Employer? and
(b) I understand from reading there is a €1,500 disregard reduction first on these fees per year so does that mean I need to allow for €3,000 disregard as it was a 2 year part time course or is the disregard €1,500 as I am repaying it all this tax year.

Hope this makes sense, I would appreciate any advice thanks.
 
According to Citizens Advice fees paid by employers are ineligible for tax relief. The money you are paying back to your employer is not you paying the fees 2 years later it is you paying a debt to your previous employer. Revenue would look for proof that you paid the fees directly to the college for you to be eligible for the tax relief, and you do not have this proof. Sorry about that, but hopefully your new job is a better paying one because of your new qualification so you will gain in the long term.
 
Thank you Clamball, that's unfortunately not the answer I was hoping for. Would I be fully liable for the gross amount even that they would have been able to write it off as staff training?
 
Here is the relevant legislation:
"Subject to this section, where an individual for a year of assessment proves that he or she has[…]10 made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of"
My view is that you should be able to reclaim it. This is section 473A and you did make a payment - it was to your employer and not the college directly. It would need a very literal interpreation to deny rely on these grounds. I'd be inclined to claim it on the basis that you did incur it.
 
You must log in or register to reply here.
Back
Top