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HMRC internal manual

Tax Credits Technical Manual

Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Work-related Training

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4) Table 1 (item 11C)

The payment or reimbursement to an employee of any sum in connection with work-related training or individual learning account training (section 251 and 256 of ITEPA) where no liability to income tax arises under Chapter 4, part 4 of ITEPA 2003.


Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.