Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 1263: To ask the Minister for Education and Science the reason reimbursed travelling expenses are included as reckonable income for third level grant purposes in view of the fact that the payment would not be actual wages despite the figure being included on the P.60; if she will review this; and if she will make a statement on the matter. [28591/06]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The three Third Level Student Support Schemes, administered by the Local Authorities and the Vocational Education Committees on behalf of my Department, offer financial assistance to eligible students attending approved third level courses. Students entering approved courses for the first time are, generally speaking, eligible for grants where they satisfy the relevant conditions as to age, residence, means and nationality. Under the terms of the Schemes grants may only be awarded where the reckonable income is below the prescribed income limits.

For the purposes of determining grant eligibility under my Department's Maintenance Grants Schemes, reckonable income is defined for the purposes of the 2006 Scheme as all amounts received or receivable by an individual without reference to his/her residence or domicile, from both Irish and foreign sources, which are liable to Irish Income Tax, Irish Capital Gains Tax or Irish Capital Acquisitions Tax, or which would be so liable but for exemptions and reliefs contained in Irish legislation, and corresponding amounts received or receivable by individuals resident in another EU Member State which are liable to Income Tax, Capital Gains Tax, Inheritance or Gift Taxes of that State, or which would be so liable but for exemptions and reliefs contained in the legislation of that State.

If the travel expenses are included on the P60 and are liable to Irish Income Tax they would have to be included in reckonable income.

In certain circumstances Revenue regulations oblige an employer to deduct Income Tax under PAYE when an expense payment is made to an employee. Where this occurs the employee may make a claim to his Inspector of Taxes on the grounds the expenses are allowable deductions for income tax purposes. The amount allowed by the Inspector on foot of this claim would generally be allowed in calculating reckonable income.

As all applications for financial support are means tested in accordance with the terms of the student maintenance grant schemes, a candidate shall not be eligible for a grant if the reckonable income for the purpose of the means testing is over the prescribed income limits irrespective of the individual circumstances.