Wednesday Club Blog – Claiming Tuition Fees

When’s a Tuition Fee a Registration fee?

Of the many questions we are asked regarding tuition fees, the most common relate to the difference between Registration fees and Tuition Fees.

From a tax perspective, you will not be able to claim tax relief on Registration fees, but may be able to claim tax relief for Tuition Fees.

The term tuition is used to refer to a fee charged for educational instruction. If you’ve had to pay to attend a certain course or college this would be regarded as a tuition fee. Registration fees however are paid to register with the college this why tuition fees usually apply to mature students. The tax relief on tuition fees applies to higher education courses only; it does not encompass PLC courses.

In practice it’s hard to tell the difference between registration fees and tuition fees – and then know if it’s an eligible tuition fee, so you’re not alone!  If you are undertaking a course in Ireland and unsure if it’s a  tuition fee, the proof in the pudding is get the college fees office to send a copy of the invoice clearly stating the Fee is a Tuition fee and that it is eligible for tax relief.  Or just give us a call and we can advise.

Relief for Tuition Fees

Some changes have been made in regards to who can claim this relief, up to 2006 an individual could claim tax relief if he/she has paid tuition fees for third level courses on behalf of a spouse, child or person for whom the individual was the legal guardian. This changed in 2007 and now the required relationship is not relevant, the individual can claim relief as long she or he has paid the qualifying fees. The relief is available for tuition fees paid for certain full-time and part-time courses of at least two years duration. The relief applies to fees paid for certain training courses in the areas of information technology and foreign languages.
Relief is not available if any part of the tuition fees paid are met directly or indirectly by grants, scholarships, or by an employer or otherwise. Also no relief is available for administration, registration or examination fees.
Relief is available per course, per academic year of fees paid up to €5,000 per course. If you have paid fees for more than one individual you are entitled to relief for fees paid for each person up to the maximum limit per course. Where fees are paid in instalments and any such instalments are paid in a tax year following the year in which the academic year of the course commenced, relief may be granted in the tax year the course commenced

Third Level Education
Approved Colleges
Approved Colleges for the purpose of the tuition fees tax relief include:
• Universities, Public and Private Colleges and Institutes of Higher Education in the State that provide courses that are approved for higher education grants.
A college or institution of higher education in the State which operates in accordance with certain codes of standards laid down by the Minister for Education and Skills (these colleges and institutions must be approved by the Department of Education and Skills for the purpose of this tax relief)
• Publicly funded or duly accredited Universities and Institutions of Higher Education in another EU Member State
• A college or institution of higher education in any other EU Member State providing distance education in this state, which provides courses approved for the Higher Education Grants Scheme (this includes the Open University)
• Publicly funded or duly accredited Universities and Institutions of Higher Education in non-EU Member states (N.B applies to postgraduate courses only) and
• Colleges or Institutions (in the state and in any E.U Member State) which provide distance education in the state and which operate in accordance with a certain code of standards laid down by the Minister for Education and Skills
(These colleges and institutions must be approved by the Department of Education and Skills for the purposes of this relief)

DOCUMENTATION REQUIRED

• Amount of Tuition Fees
• Name and address of student
• Name and address of individual who paid tuition fees
• Course of study and duration
• Confirmation that the college is publicly/privately funded in an EU/NON-EU Country

COMMON QUESTIONS:

My boyfriend paid for my course can he claim for relief?
Yes, with effect from 2007, an individual can claim tax relief on fees paid for third-level courses as long they paid the qualifying fees.