Skip to main content

This is a new service – your feedback will help us to improve it.

  • Is scholarship paid to employees or directors corporate tax deductible?

    Hi, I'm one of the director/shareholder of a small LTD. I'm about to start a 1 year full time MSc degree at a University which will benefit the company and increase output. I came across this legislation online: as part of Section 776 IT(TOI)A 2005 (Section 331 ICTA 1988) a company can provide scholarship to employees in full time education. Please could you help me understand: - Is this scholarship corporate tax deductible? - Can I receive this scholarship as a director/shareholder? - Do I pay income tax and NIC? - Does the company pay NIC? - If I worked evenings and weekends for a small salary at the same ltd company, are the income tax and NIC payable only on the salary or are they payable on both the salary and scholarship combined amount? Thank you very much for any help!