Scholarships – tax-free?
Employers can potentially make tax-free payments of up to £15,480 a year to employees for periods of a full-time education course at university or college.
To qualify for the tax exemption the employee must be enrolled for at least one full academic year and must be required to attend, and actually attend, for at least 20 weeks a year. Only recognised universities, technical colleges, etc. that are open to the public at large qualify.
Unfortunately, in a family company, directors’ children are unable to take advantage of the provisions but in some circumstances a remoter relative could benefit provided that the student was validly employed and his parents not involved with the company.
Date: 2nd July, 2013
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