Tap into tax benefits of staff learning sign language

A private member’s Bill to give British Sign Language (BSL) legal recognition has been backed by MPs and is currently passing through the House of Lords. This legal recognition, along with the recent high profile Strictly Come Dancing success of Rose Ayling-Ellis (who backed the Bill), may inspire more people to learn BSL. 

The good news is that employers may be able to pay for employees to undertake BSL training without incurring income tax or national insurance charges.

To be exempt from tax the training must qualify as ‘work related’ - defined as any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which:

  • are, or are likely to prove, useful to the employee when performing their duties; or
  • will qualify or better qualify the employee to undertake the employment, or to participate in charitable or voluntary activities arising through the employment.

These conditions may be fulfilled if, for example, the employee uses BSL to communicate with customers, colleagues or other stakeholders.

As an added bonus, if the training is exempt from tax because it qualifies as work related, then any payment by the employer of related costs will also be exempt. This includes costs of assessment, registration and obtaining a qualification, as well as incidental costs such as additional travel or childcare incurred because of the training.

There is no restriction on the way the training is delivered either, whether classroom based, online, part time or full time, internal or external, and it does not matter if the employer pays for the training directly, or the employee pays and is subsequently reimbursed by the employer.