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A local council has requested clarification on whether fixed amounts paid to volunteer firefighters for travel and lost hours can be exempt as allowances. The Directorate General for Taxes (DGT) has ruled that, as these are fixed amounts based on hours rather than reimbursements of actual expenses, they constitute employment income subject to tax.
This ruling clarifies that fixed-sum payments to volunteers do not qualify for expense exemptions if they do not correspond to actual costs incurred, affecting how local authorities manage payroll and tax withholdings for volunteer schemes.
The tax team reviews your specific situation.
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