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Is a stipend payment taxable?

Sarah1970
Sarah1970 Posts: 62 Forumite
Part of the Furniture Combo Breaker
edited 16 March 2023 at 2:30PM in Benefits & tax credits
As part of my annual bonus, we have been awarded a "Stipend" to help cover living costs as a one of payment for 2022. Its not salary, its not a performance bonus. Its a one off living expenses payment. Having never heard of this previously, I had to google it and it appears that this payment is non-taxable. Can anyone confirm if this is the case please? .

Comments

  • poppy12345
    poppy12345 Posts: 18,976 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You’ve posted on the welfare benefits section. You’re better off posting on the cutting tax part of the forum. 
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    My understanding is it isn't taxable.
    It is often paid to those training, doing a Phd, clergy, volunteers, etc.
    Not usually awarded to those in paid employment - so your treatment may vary. I'd suggest confirming the treatment with your employer / payroll manager. 
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Personally it sounds like a taxable payment as the op is only receiving it because they are an employee of that company.

    But only the employer can explain one way or the other.
  • penners324
    penners324 Posts: 3,688 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    It's basically a taxable bonus so yes
  • DarcySarto
    DarcySarto Posts: 20 Forumite
    Second Anniversary 10 Posts
    edited 18 March 2023 at 11:15PM
    A stipend is used in the Church of England instead of a salary. In the CofE the stipend is taxable. Clergy (and leaders of different faiths) have various and different tax regulations. There are specific tax advisers out there for those people. I can recommend one if needs be.
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