123 account question

DannyWhoWorks

I have just set up a 123 Santander Account.
I am going to be a student teacher from September and receiving a 20k bursary. Therefore, when it said salary I have put 20k.

However, I plan to keep my savings in this account and as the 20k is a bursary and I will only be working a very small amount, I will not have to pay tax on my interests. But I am worried when I fill the form out and hand it in, when it is processed, they will not allow it as I have said I am earning 20k a year - even though this is a bursary!

There was nowhere in the application where I could state it was a bursary.

Herbalus

Don't worry about it - just fill in the r85. They aren't so sophisticated that they would twig this is an issue.

vouch0r

................7.3 The bursary awards are not taxable; however they may be treated as capital
income for the purposes of assessing income for trainees in receipt of state
benefits. Providers are advised to direct trainees towards their local benefits
office to check whether this may affect their state benefits.

anoncol

vouch0r wrote: »

isnt the bursary taxable?

It's income!

molerat

Santander don't care how much you earn or your tax status - you can request interest paid free of tax with a tick box in your on line account, no need for paperwork - as long as you put £500 through each month and have 2 direct debits set up to get interest.

Herbalus

anoncol wrote: »

It's income!

Yes, but not all 'income' i.e. money that you get is taxable. Bursaries, scholarships, and student grants are not taxable income.