§ Ms. ShortTo ask the Chancellor of the Exchequer whether, and in what way, any of the payments that will be paid to trainees on the proposed employment training scheme, including their training allowance, any end of scheme bonus, any earnings outside the programme and any topping up payments they receive from their training placements, will be assessed for taxation purposes; and if he will make a statement.
§ Mr. Norman LamontThe training allowance payable to trainees who participate in the employment training programme will not be chargeable to income tax. Similarly, top-up payments received from a training provider during an individual's training, or an end-of-course training bonus, will not be taxable provided a trainee's entitlement to such payments arises only from the completion of part or all of his or her training plan.
The tax treatment of a trainee's income which does not arise from participation in the programme will depend on the precise circumstances in each case. Income from an employment would be chargeable to income tax under schedule E and tax would normally be deducted under the PAYE arrangements.