JR81, thanks for that although not exactly what I wanted to hear!
So even if the company paid direct to the new employer cutting out the employee, under normal circumstances, an individual will be liable to tax. If it isn't normal circumstances the taxman would get suspicious!
Parabellum, lowfat & HC I was with you and assumed there's no tax implications. However, I'm glad I caught this early and certainly before the taxman. The bonding situation within our industry seems a bit unusual and I'm left wondering if the taxman understands this unique situation because a bond isn't a "tangible good" like a suit (which they use as an example in the links). It represents training which enables the fulfillment of your duties. It is a contract to protect a company's investment which is paid back over time. Unfortunately, it seems that once the contract is broken the taxman sees it as money!
It has been proven in court within the UK that it isn't tax deductible, have a look at this:
Airline pilots: payment of training costs: Milsom & Hinsley v HMRC (SpC569) - very relevant to us as pilots!
PT