College Fees

srdb20

Hi There,

I have a further education scheme with my company, basically they have paid for my college fees.

Now if i leave within 12 months i must pay that money back to the company.
I was just wondering if there is any way around this or has anyone had any similar experiences?

Also i assume they claim some form of tax back from my college fees?
If this is so, and i had to pay the company back all the fees, would i then be entitled to claim tax back?

Cheers

Iago

Generally this is included as part of the policy for companies paying fees, it'll be laid out on the HR site or in the employee handbook.

You are liable for the amount paid, but sometimes the company you're moving to will pay those fees as part of your new contract.

As for taxes, the company does claim the tax back but I'm not sure whether it's at PAYE level or corporate tax level, so I don't know if you can subsequently claim tax relief on the amount. If I had to guess right now I would say that you can't, but you might be able to negogiate what you actually pay the company back.

pow wow

The last multinational I worked for paid my fees with the usual 'if you leave you have to pay them back' clause. This would pretty much have eaten up my whole last month's pay....they didn't make me pay it back. And I certainly didn't ask why not!

It's standard to have the clause as an incentive for people to 1. think carefully about whether they really want to do the course, and 2. stay so the company get the benefit. I don't know how many companies enforce it.

srdb20

ellscurr wrote: »

The last multinational I worked for paid my fees with the usual 'if you leave you have to pay them back' clause. This would pretty much have eaten up my whole last month's pay....they didn't make me pay it back. And I certainly didn't ask why not!

It's standard to have the clause as an incentive for people to 1. think carefully about whether they really want to do the course, and 2. stay so the company get the benefit. I don't know how many companies enforce it.

Cheers Folks much appreciated, hopefully it wont be enforced here either!!!

Mr. Incognito

You didn't suffer the college fees- you're not entitled to the tax credit.

srdb20

SetantaL wrote: »

You didn't suffer the college fees- you're not entitled to the tax credit.

Im aware of that but surely if the company regains some tax credits or something, that i shouldn't have to pay them back the full amount.

So basically they recieve the full amount they paid plus whatever saving they have achieved via tax exemptions etc.... Doesn't seem right to me.

Mr. Incognito

So basically they recieve the full amount they paid plus whatever saving they have achieved via tax exemptions etc.... Doesn't seem right to me.

Pardon?

Do you know what way this works?

Your company can write off the cost of the employee training in their P/L as a deductible expense. They receive no "Tax Credits". If you leave that's not an allowable expense any more and you have to repay it to the company.
If you paid it in a personal capacity you'd get 20% of the cost as a tax credit.

but you're complaining that you getting a FREE course?

Eoin

SetantaL wrote: »

Pardon?

Do you know what way this works?

Your company can write off the cost of the employee training in their P/L as a deductible expense. They receive no "Tax Credits". If you leave that's not an allowable expense any more and you have to repay it to the company.
If you paid it in a personal capacity you'd get 20% of the cost as a tax credit.

but you're complaining that you getting a FREE course?

I think the question is what happens if the OP has to refund the company some or all of the fees

Mr. Incognito

It depends- if he completes the course and leaves early it's fee's paid and he can claim the credit- although he'll have a tough time getting a receipt from the company showing the fees paid as you would also need the stamped receipt from the college.
If he does not complete the course and leaves the company it would be treated as a repayable conditional loan and no credit for fee's paid is allowable as it does not qualify as fees paid for educational purposes.

srdb20

eoin_s wrote: »

I think the question is what happens if the OP has to refund the company some or all of the fees

Bingo!!!!

Sorry if this was not clear above, im having a hard time getting my head around this as it is.... Freaking out a bit.

They have only paid for the first year of the course. so if i finish the first year where do i stand?

Cheers

TJJP

srdb20 wrote: »

Sorry if this was not clear above

Thought it was perfectly clear TBH. Think someone might have forgotten their reading glasses.

If you leave, they might make you pay back. Some do, some don't.

If you have to refund you may be able claim tax relief at the standard rate. Depends when you completed the course and where it was. Could be complicated though.

See here: http://www.revenue.ie/leaflets/it31.pdf

srdb20

Thanks very much, ill have a read of that over lunch.