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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: Payment or Reimbursement of Re-training course expenses

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg.4 (4) Table 1 (item 18)

The payment or reimbursement of retraining course expenses, such as costs of books, travelling expenses, examination fees where the retraining is entirely connected with employment, or self-employment, by virtue of section 311 of ITEPA. (See EIM05005 and EIM05010-EIM05020)


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.