Hello Sharon,
We had a similar case last year and looked long and hard for an answer, as we were very unsure how to treat it-
We found only 2 bits of guidance-
One i think was circular A43/2000 which had a Q &A bit. It said- “How are training salaries regarded?- These amounts are not paid as salaries, nor are they paid as grants or loans. If the sum of money is paid in instalments it is regarded as income over the period Oct-June, or if paid as a lump sum it is regarded as Capital”
The other was a bit i think in the Guidance manual- “Incentive payments made to postgrad trainee teachers, formerly training salaries, are now called training bursaries. These bursaries are paid in instalments and should be taken into account over the period payable. The disregards should be applied if the student is not eligible for a loan. If in exceptional circumstances it is paid in a lump sum then treat as capital”.
In our case it was a lump sum so we treated as capital. Don’t know if any of the above is correct- but that was what we found- if you search the message boards i think there have also been some previous posts on this.
not sure how much help that is- but there you go anyway….
.
