Bonds and the Taxman
Here's one for the cockpit lawyers. Maybe it has already been asked but has got me thinking ..............
If you terminate your contract and find yourself having to pay off a training bond, is this repayment tax deductable?
If this repayment IS tax deductable, if you were to fulfill the required period of employment to satisfy the terms of your bond, by the same token, does this constitute a benefit in kind which you are liable to PAY tax on?
Employers seem to give the impression that they are doing you a favour by training/investing in you to work on their equipment and are trying to prevent you leaving before they have had a return on that investment which implies that they see this investment as of benefit to you therefore must be a benefit in kind.
Likewise, your repaying the bond is an expense that you would not have if you had never had that training/job so it must be an expense directly attributable to your job so must be tax deductable.
Anybody have any experience of this or further thoughts? (must admit, haven't asked the taxmen)