Are expenses the same as a salary?

M

moneyquery

Guest
Hi,

I was wondering if some of you would be able to clear up a question I havn't been able to find an answer for.

==> Background info
I'm starting a full time internship with a company the end of October were the only income I will be on is 200 Euro a week for "expenses" (as stated in contract). This will be a 4 month contract. I am not mad, its a very good opportunity to get into an industry I have a huge interest in....
I have earned 10 months pro rata of a 30k salary + some bonus's for the previous portion of this year.

==> Problem
I'm not very tax savvy or finance literate. Is this 200 euro a week the same as a salary? Or am I considered unemployed? Am I entitled to claim back any of the tax I have paid on bonus's/ my wage etc in this year so far?

I'd really appreciate it if someone could please help me with this or point me in the right direction as to were to find information

Thanks
 
Yes, the €200 will be treated as salary.
It is in effect a round sum allowance and therefore taxable as income.
 
I dont think it would be treated as salary. Lots of french/spanish students come here on similar terms and it is treated as like unpaid work exp, you get a expense to cover basic expenses.

i think this is quiet common and as it is in contract it backs it up.

I dont think you might not be even on the payroll. as such it is like a career break for a few months.

I stand to be corrected. internship is the key word. also it can only go on for a few months, them you must leave or go on payroll. Some of the colleges if you rang them might knew about treatment
 
Domo said:
Yes, the €200 will be treated as salary.
It is in effect a round sum allowance and therefore taxable as income.
Click to expand...

I agree. OP will be either an employee with the 200 put through the company payroll or OP will be a contracted self-employed worker, in which case the 200 must be declared as income.

There is no facility with the Revenue that I am aware of to pay a regular round sum as tax-free "expenses" in either case.
 
mathepac said:
I agree. OP will be either an employee with the 200 put through the company payroll or OP will be a contracted self-employed worker, in which case the 200 must be declared as income.

There is no facility with the Revenue that I am aware of to pay a regular round sum as tax-free "expenses" in either case.
Click to expand...
 
It is almost certain that you are being paid this money "on account of service rendered" - logically there is a quid pro quo.
Revenue would definitely regard these payments as salary.
You can, however, write off genuine expenses of an employment against the emoluments paid by the employer. The conditions attaching to this is that the expenses must be "wholly, necessarily AND exclusively incurred in the PERFORMANCE of the duties of the employment". The emphasis is deliberate.
Common misconceptions relating to expenses include the belief that items such as travel to the place of employment qualify. They do not.If however, you are required to spend time away from your place of employment then expenses associated with travel away from base may qualify.
It's not possible to give a definitive reply without knowing the exact circumstances of you engagement.
 
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