Entitled to pay no tax?

SparciaM

I'm going to be a student again in April and I'll be getting a bursary of £6500 a year to study.

My question is: How do I find out if this £6500 will go towards my tax allowance, or will I have to work before I get taxed?

I probably will be working part time, but I'm trying to work out exactly how much and from what sources will be taxed and if there are any benefits or government incentives that could be available to me.

amersall

you are just over the tax allowance for the year, if you find a job you will be taxed for every pound you earn (tax codes are 635 that means you can earn 6350 a year before tax) i am allmost sure tax codes are going to increase again for low income workers, as you are a student i would phone your local tax office they will tell you what you need to know

CLAPTON

most bursaries are tax free

what sort of busary are you getting?

SparciaM

It's an NHS Bursary.

In the literature, it mentions something about not being part of the allowance, but I didn't quite understand it properly.

Is it best to ring the Uni or the tax office regarding the status?

_bankrupted

What is important is the tax status of the award. Generally bursaries are tax exempt, so as far as HMRC is concerned it doesn't exist.

And as an anecdote of ridiculous tax rules (not implying bursaries come under this category)... When I graduated a few years back my starting salary was £11700. My friend doing law was accepted into chambers after graduating and received £12,000, totally tax free.

You see I was paid by employer and rightly taxed. His employer, (the barristers of the chamber) didn't pay him!! They simply clubbed together and gave him an allowance of £12,000. Now how that ever got through HMRC rules I don't know, maybe it's changed these days.

Contact HMRC (your local tax office). They will have the definitive answer, which in all probability is that it is tax free and they don't care about it and hence you don't declare it.