Our client, a non-domciled expat, had recently started a new role with a UK employer following completion of his MBA at a leading US college, at a significant cost.
Following a review of his affairs we were able to identify that whilst his MBA study costs had been reimbursed by his employer, the reimbursed amount had been taxed in full via his employers payroll. This is often standard practice, but is not always the correct treatment. A further review of the clients employment contract and offer letter allowed us to confirm his circumstances matched those of a specific tax case and should not have been taxed.
Therefore following a full disclosure to HMRC the tax withheld on the reimbursement MBA costs was refunded in full. In addition, as our client was non-UK domiciled and we were able to claim overseas workdays relief and claim a further tax refund in respect of workdays performed overseas.
In the right circumstances these combined reliefs can prove very valuable to a UK taxpayer, providing they are considered carefully at the appropriate time.