Expense deductions
If your grant has been awarded to fund your work and cover expenses, you may deduct expenses related to your grant work on your insurance application.
Since Mela insures only the share of the grant that remains for actual work, deducting expenses will reduce the amount of earnings used to calculate your insurance and therefore also the amount of pension that is accrued and your insurance premiums.
The amount of expenses that can be deducted
The body that awarded the grant may further limit the amount of expenses that can be deducted, in which case the same limit is applied by Mela. If the awarder of the grant does not limit the amount of expenses that can be deducted, you can deduct expenses amounting to no more than half the total amount of your grant. If the awarder of the grant approves your expense deductions, you may deduct these expenses even if they have not been notified on the grant application.
Deductible expenses include, for example:
- material costs
- equipment costs
- travel expenses
- studio/office expenses (outside the home)
- additional living costs caused by working abroad (e.g. rent).
Everyday living costs (such as housing costs, food, travel cards), taxes and obligatory insurance premiums are not deductible.
Expense deductions are based on your own estimates
Deductions are generally based on the applicant’s own estimates, since the exact amount and type of expenses may not be known when starting work. What is most important is that the itemised expenses clarify the purpose and amount of the expenses. We do not require receipts or other payment documents.
Expense deductions must be made already on the insurance application, since the level of insurance cannot be adjusted after the end of the 30-day period during which changes can be made to your application.
