Working Through Further Education

Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else.

However there is a statutory exemption that may remove any possible tax charge where an employer, or a third party, incurs expenditure on work-related training for employees. It does not matter whether the employer directly incurs the expenditure or reimburses the employee's expenditure. The exemption covers sums that would otherwise be taxable as earnings, as benefits, or under the vouchers rules.

So if you have or are thinking of employing a part time employee who is in further education we could perhaps look at the package and think about restructuring to take advantage of the available exemption. You don't have to pass all the savings on to the employee!