We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Paying tax on PhD studentship whilst working
ZLB
Posts: 2 Newbie
Hello,
I have been offered a funded part-time PhD, which comes with a tax-free stipend, I currently work full time.
I am planning to formally reduce my contracted days to 4 a week, and will go down to 0.8 FTE on my salary.
Will I need to pay any additional tax on my salary by receiving the tax-free stipend? My 0.8 FTE will still keep me above the tax-free threshold. I am not expecting to pay any tax on the stipend, but I can't seem to find any clear information on what impact receiving it will have on the taxable side of my income.
Any advice would be greatly appreciated, thank you!
I have been offered a funded part-time PhD, which comes with a tax-free stipend, I currently work full time.
I am planning to formally reduce my contracted days to 4 a week, and will go down to 0.8 FTE on my salary.
Will I need to pay any additional tax on my salary by receiving the tax-free stipend? My 0.8 FTE will still keep me above the tax-free threshold. I am not expecting to pay any tax on the stipend, but I can't seem to find any clear information on what impact receiving it will have on the taxable side of my income.
Any advice would be greatly appreciated, thank you!
0
Comments
-
Assuming that your stipend is paid by a separate entity to your salary I THINK it would make no difference to the tax due on your salary.
Your employer would just reduce your salary, and the stipend payer would pay free of tax. Neither should be affected by the other.Signature removed for peace of mind0 -
My daughter's in a similar position - and although she is cutting her working hours so she can study and carry out research, she will continue to pay tax on her salary as per normal.
The stipend she has been awarded is tax-free.Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.0 -
Scroll down to the scholarship income section via EIM04700 - Employment Income Manual - HMRC internal manual - GOV.UK (www.gov.uk)1
-
Thank you everyone, very much appreciated.
I think that as the stipend is not considered an employment income it shouldn't impact the side of my income that is taxable. That makes sense to me in my limited understanding but it's not written explicitly anywhere that I can find on HMRC's website (thanks for the link to that).0 -
Hi there, did you ever get any further clarity on this? In the same situation.0
-
Not sure why there's an issue here. It's clear that a stipend isn't considered as taxable earned income:
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim06265
so there's no reason why it would impact on earnings from employment.
Maybe post a question on https://community.hmrc.gov.uk/ if you are still concerned?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.3K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.2K Spending & Discounts
- 243.3K Work, Benefits & Business
- 597.9K Mortgages, Homes & Bills
- 176.6K Life & Family
- 256.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards