Paying back study fees, how does it work?
Paying back study fees to an accountancy firm typically occurs under a training contract where the firm pays for your tuition or exam fees (e.g. for ACCA, ACA, etc.) and you agree to certain conditions.
Here’s how it usually works:
1. The Agreement
- When you join the firm, you often sign a study support or training agreement.
- This outlines the terms under which they pay for your professional studies (e.g. tuition, exam fees, materials, paid study leave).
- A repayment clause is common and if you leave the firm within a certain time frame, you repay all or part of the study costs.
2. Clawback or Repayment Clause
If you leave the firm before a specific period (e.g. 12 or 24 months) after the firm has paid for a particular exam or course, you are required to repay some or all the money.
Repayment is often on a sliding scale, example below:
- 100% if you leave within 6 months,
- 50% if you leave within 12 months,
- 0% after 24 months.
3. Typical Costs Included
You might have to repay:
- Tuition/course fees
- Exam fees
- Professional membership/subscription fees
- Study materials
- Even associated travel or accommodation costs in some cases
4. Repayment Process
- If you resign or are terminated, the HR/Finance team will calculate the amount you owe based on the clawback terms.
- The amount is often deducted from your final salary.
- If your final salary isn’t enough, you’ll usually be asked to pay the remaining amount via bank transfer or set up a payment plan.
5. Things to Check
Before signing a contract or leaving a firm:
- Read the training agreement closely.
- Clarify the timeframes and amounts repayable.
- Ask whether repayment applies if you’re made redundant (some firms waive repayment in this case).
- Confirm if partial repayment is possible or if full payment is expected.
Example:
You join a firm in January 2023, and they pay £3,000 for your first year of ACCA training.
The repayment clause says:
“100% repayable if you leave within 12 months, 50% within 24 months, 0% after 24 months.”
If you resign in June 2024 (18 months later), you’ll repay 50% = £1,500.
