Tap into tax benefits of staff learning sign language
With MPs recently backing a Bill to give British Sign Language (BSL) legal recognition and to ensure it is used more in public services,1 the Association of Taxation Technicians (ATT) is reminding employers that they can pay for their employee to learn BSL without worrying about the tax consequences.
The private member's bill has been brought by Labour MP Rosie Cooper, with actress and Strictly Come Dancing winner Rose Ayling-Ellis, who is deaf, among non-MPs who back the move.
Where an employer pays for something on behalf of an employee, this can result in a tax and national insurance charge (income tax on the employee, potentially National Insurance on both). But there is a specific exemption from tax and National Insurance if an employee is provided with work related training.
Jon Stride, Co-chair of ATT’s Technical Steering Group, said:
“Many people may feel inspired to learn British Sign Language because of the high profile success of Rose Ayling-Ellis on TV and in Strictly Come Dancing. Together with Rosie Cooper’s bill, this could lead to greater demand for people who can use British Sign Language. Fortunately, there is a quickstep for employers to side-step tax when paying for their staff to learn British Sign Language.”
To be exempt from tax the training must qualify as ‘work related’, which is 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.
Jon Stride said:
“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.”
Notes for editors
- Private Members Bill 33 2021-22 as introduced on 26 January 2022 : A private member's bill to declare British Sign Language (BSL) an official language of the United Kingdom; to provide for a British Sign Language Council to promote and advise on the use of BSL; to establish principles for the use of BSL in public services; to require public bodies to have regard to those principles and to guidance issued by the Council; and for connected purposes. It was given an unopposed second reading in the Commons after securing the Government's support. The Bill will have its committee stage in the House of Commons on 23 February 2022. More here.
- People who do some work-related British Sign Language (BSL) training could go on to work as British Sign Language interpreters to help deaf and hearing people communicate with one another. To do this role, you will need a degree or level six award in both British Sign Language and interpreting. You would also need an approved qualification in interpreting such as postgraduate or master's degree in interpreting or translation; or Level six Diploma in Sign Language Interpreting. You could work for an organisation that supports deaf people, or in a school or college, for example, as an educational support assistant. You could then do your British Sign Language qualifications on the job to qualify as an interpreter. Getting involved in deaf clubs or centres for deaf people is an effective way of getting experience and may give you the opportunity to get relevant training. More here. Of course, some basic BSL will make people feel welcome/generally provide assistance, even if an ‘access level’ course.
- HMRC allow relief to be claimed for professional membership where BSL is used as part of their job, such as the Association of Sign Language Interpreters – More here and on Gov.UK here.