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Graduate internship payments - treatment in company accounts

Graduate internship payments - treatment in...

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My client runs a small company and took on a graduate intern from a local university as part of interns training. The company received a Graduate Internship Grant (£1600) for providing the intern place. What is correct treatment.

I have posted the money received as other income, and not treated it as not VATable.

What is correct treatment for any payments made to the intern. I believe that a lot of interns just receive a travel and meal allowance, which I assume would be booked as expenses and reimbursed as such, but in this case the intern was put on payroll and paid tax NI etc in normal way. Is there any problem with this? (The intern has subsequently joined the company on a permanent basis)

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By Outofpractice
03rd Sep 2010 16:43

Normal wages

If the intern is deemed a 'worker' they are classed the same as an employee (just on a temporary basis).

So basically if you told them the days and hours they were to come in, expected them to follow the same rules and procedures staff follow, told/gave them work to do that they carry out on their own and without full and constant supervision and paid them any monetary benefit, they are considered a 'worker'.

So as they are classed the same as employees it would just be wages & salaries as normal

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By SRK Accounting
16th Sep 2011 10:09

And if they are not classed as a worker?

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