Who this article is for:

  • Limited companies

Categories explained: Educational Assistance for Employee

Sometimes as an employer, you may offer to help your employee pay for their education. If this education

What's included

Degrees paid for your employee such as an MBA or Masters.

What's not included

Any work-related training expenses you pay for your employee in order to develop their skills or expertise you don't have to report to HMRC.

How is it taxed?

The employee pays tax and makes national insurance contributions on the payment made for the value of the education.

Tax tips

The total amount to report is the cost of the course/training plus any related costs like books or travel expenses.

Useful links

Claiming VAT on employee rewards and perks.

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