ÀÏ˾»úÎçÒ¹¸£Àû

School fees


Produced by Tolley in association with
Employment Tax
Guidance

School fees


Produced by Tolley in association with
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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL
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.

Powered by
  • 09 Jul 2024 11:51

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

Popular Articles

Owner-Managed Businesses

SEIS and EIS ― overview

SEIS and EIS ― overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in

14 Jul 2020 13:31 | Produced by Tolley Read more Read more
Employment Tax

Incentives, awards and prizes

Incentives, awards and prizesIntroduction ― incentives, awards and prizesEmployers may use a variety of methods to reward and encourage employees in their work. These are commonly known as incentives, awards or prizes. For the purposes of this note, the term ‘award’ will be used to cover all

14 Jul 2020 11:57 | Produced by Tolley Read more Read more
Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more Read more