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Volunteers often incur expenditure while carrying out their voluntary activities. This could be from the activity itself or travel to or from where the activity took place.
Reimbursement payments are treated as tax-exempt income for the individual if they are based on:
Honoraria are payments made for services provided where no fixed payment would normally be made. They are treated as schedular payments for tax payments.
If a payment is partly honoraria and partly reimbursement of expenses, provided the portions of the payment are clearly identified and recorded, the honoraria will be taxable and the reimbursement will be tax-exempt income.
If there's no distinction between the honoraria and the reimbursement, the entire payment is considered honoraria and is taxed as a schedular payment.