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)