HMRC have advised that the tax and NICs free limit applying to payments made by employers to employees attending full-time educational courses is to be increased from £15,000 to £15,480 for the 2007–08 academic year.

Payments made by employers to employees for periods of attendance at a full-time educational course at a recognised academic establishment may be treated as being exempt from income tax where certain conditions are met.

One of the relevant conditions set out in the Statement of Practice is that payments in respect of an academic year (beginning on 1 September and ending on the following 31 August) must not exceed a specified financial limit. For the 2007-08 academic year (beginning on 1 September 2007) and subsequent academic years the limit is increased to £15,480.

Further information, including the full Statement of Practice, is available at http://www.hmrc.gov.uk/legislation/sp4-86-note.htm