Taxation of FAS/Solas apprentice allowance....

4th estate

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I hope some kind person may be able to help with this query-

I have searched Citizens. Information, the Solas website and Revenue.ie, but I m still lost.

My nephew completed his apprenticeship in FAS in 2012. He received an allowance of approx €11,000 for that year. This was not taxed by FAS. In the same year after qualifying, he got a job as a subbie, and filed a tax return under self assessment for that income. He did not include the FAS allowance as he thought it was tax free.

He now has a tax bill of €1,200.

I'm of the opinion that he should complete a revised tax return and include the allowance, and claim PAYE credit for the allowance income, and that would wipe out his tax bill for the self assessment income.

I will check with Revenue in Monday, but just wanted a heads up if anyone has experience of this situation.

The guy is in Australia, and hasn't got the money to pay the tax bill in one go.

Many thanks.
 
Fas allowance isn't taxable according to Citizens Info...

http://www.citizensinformation.ie/e...ion_and_training/fas_training_allowances.html

Maybe if he transferred from Jobseekers Benefit, which is taxable, it could cause confusion.

If the payment turned out to be taxable he would be entitled to the PAYE tax credit. But he would probably be better off if the allowance was not taxed at all... which looks like the correct treatment

Thanks for your reply, I think you're right.

If he includes the allowance and it is taxed, he will have a tax liability on that!

I think I better think it out again!
 
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