If you take someone on under the youth training scheme as an employee you should include both the YT allowance you receive from the government and any top-up pay in their taxable pay and treat it accordingly. However if you do not pay the YT allowance direct to the employee, matters become rather more complicated.
It is also possible to take a young person under the YT scheme but not treat them as an employee. This can lead to more confusion in how their remuneration should be treated for tax purposes.
It should be stressed that the New Deal is something quite different and is subject to its own rules and regulations.
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