CAT Cousres Tax relief if company pays for them?

FMI

Hi,

Quick query im here a couple of months with this company, at the interview they said that they would pay for ~1/2 of my course fees.

I thought that a company can claim tax relief for the amount of the course, is that right? I am doing a couple of papers which amounts to approx €950 of which they said they would pay €500, but would it not be in their interest to pay the full lot as then they would recivbe a €950 tax relief?

Is this correct or have i got this totall wrong? any help appreciated? Cause would like to try and persuade them to pay the full amount as i beneifit fully but so does company as either way they have to fork out the €950 whether 500 on me and €450 in other tax, is that right?

Thnaks for reading this.

maddogcollins

Training fees are an allowable expenses for a company. That means they could take the full €950 as an expense.

But, it is techincally only worth €118.75 (950*12.5%) in tax relief to them.If they did not pay for the course, their income would be €950 higher and cost them €118.75 in tax.

So they are electing not to pay the remaining €450 as it will only save them €56.25 on their tax bill but still cost them the full amount.

This is my understanding of it. Hope it clears it up for you. I am open to being corrected tho.

FMI

Thanks alot maddogcollins much appreciated....