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HMRC internal manual

Employment Income Manual

Employment income: New Deal: option 2: full-time education and training

New Deal was phased out on a rolling programme ending in September 2011. This guidance will be retained until all potential New Deal recipients are out of the in date tax years.

New Deal participants on a full-time education or training placement receive a training allowance from the Employment Service. No income tax or NICs are payable on this allowance.