Dilemma with claiming tuition fee

T

tostao

Guest
Hi, My employer pays a portion of my tuition fees. It is an odd arrangement whereby they pay the total fee for me at the start of the academic year and reclaim this by deducting the cost from my pay packet month by month. If I do not pass the exams or leave the company I am liable to pay the full cost of the course. I am planning to move job sometime in the New Year and will have to reimburse my employer for the cost of the course. If I claim the tax relief on the full cost tutition fees will this set off a red flag in the Revenue? I want to avoid the possability that Revenue would a) Contact my employer b) Ask questions of me why I am claiming when my employer seems to be paying the bill. Thanks Tostao
 
At the end of the day it appers that you will be the one who bears the cost of the fees and therefore should be entitled to full relief.

Can I assume if you pass and stay with the company they do not deduct the cost from your pay packet each month?

This should not neccessarily set off a red flag in Revenue and they may not check your claim, if they do so you just need to explain the situation and that eventually you beared the cost of the fees.
 
In the normal course of events Revenue would not know anything about it. All they see at the end of a year is the P35 return which basically has the same info as your P60. BUT.... There is a strong possibility that if they do an audit on your employer and see on payslips monthly deductions for the fees your employer pays up front (the part your pay), they will treat this as a Loan, this is BIKable at 11%. The part of the fees that your employer pays are not BAKable, providing that the course is related to your employment. What is interesting is, if employer looks for his part of the fees back a year later (failed exams/leaving) will Revenue deem the full amount as a loan!!! ???

Sorry. I think I just made your quandary worse...


Towger
 
I did a course that my employer funded to the tune of 50% - you can claim tax relief on your contribution, regardless of whether you leave or not... the arrangement you have with your employer, in terms of the fees they paid, will need to be reimbursed.
 
what about a situation where you are invoiced directly for a course but then have it paid for by your employer, can you claim.

It could be argued (perhpas) that your bonus is lower or your pay rise smaller because the company view this as a bonus to you from them.

so in a way it has cost you money?...is this possible..just curious, or would ths be manufacturing a transaction for tax reasons?
 
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