Training payments

Our team of experts tell you what you need to report to HMRC if you pay for any staff training

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

What is included training expenses?

If you cover the cost of any training on behalf of your employees or pick up the expense of any costs related to the training, such as travel or books and equipment, HMRC considers these to be training payments. If you pay these costs for your employees, you might have to report these costs to HMRC and as a result you may have additional PAYE tax and National Insurance to deduct and pay.

Are there any exemptions?

As long as the training is work-related, you don’t need to report anything to HMRC and there won’t be any additional tax or National Insurance to pay.

How do you report to HMRC and pay?

If the training costs you are covering aren’t exempt for HMRC purposes, they will need to be reported to HMRC and you might have to pay additional tax and National Insurance as a result. How you report them to HMRC and pay on them depends on who arranges and pays for the training. The amount that should be reported needs to be the full cost of the training, including any related costs such as travel expenses or books.

If you arrange the training and pay for it directly, you need to be report the cost on your P11D form and pay Class 1A National Insurance on the cost to you of the value.

If your employee arranges the training but you pay the supplier directly, the cost of the training needs to be included on your P11D form and you will pay Class 1 National Insurance through payroll on the cost of the training. There will be no additional PAYE tax to pay though.

If your employee arranges and pays for the training and you reimburse those expenses, HMRC considers these costs to be additional earnings. You need to add the amount you reimbursed your employee to their other earnings and deduct and pay PAYE tax and National Insurance through payroll, in the same way you would for their other earnings.

How can DSR Tax Claims help?

We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful.  Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

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