Employer training tax relief – checks needed Monday, August 9, 2010 - 11:42

In its Tax Relief for Training paper submitted for the Spending Review, NIACE states that current policy on tax relief for training could be more equitable and is not yet delivering best value to Government.

NIACE is also concerned that no conditions are attached to the granting of tax relief and that employers do not have to account for how, on what and upon whom it is spent.

As reported in last Friday's Times Educational Supplement (6 August 2010), Alan Tuckett, Chief Executive of NIACE, said:

"Tax relief is effectively a public contribution to private employer training expenditure and if £3.7 billion of revenue is foregone by the public purse, it is not unreasonable that the onus should be on employers to demonstrate it is being spent to good effect and is not simply exploited as a loophole by accountants."

"Tax breaks are a positive way of saying if you haven't got a history of investing, let's pay some of the expense. The problem with Train to Gain was it created the expectation that skills were the responsibility of the state."

"But tax breaks are not at all targeted. And look at all the rules that providers have to account for every thruppence-ha'penny from the Department for Business, Innovation and Skills and look at the freedom companies get for tax breaks, but in both cases it is money from the taxpayer to support skills."

"There is no doubt that you could use the money to get more benefit than it currently generates."