OK I'm UTTERLY confused with tax

mdb99jh

Hi everyone

I have posted a previous thread elsewhere on the board on this topic and got mixed responses to my problem. I have cotacted the inland revenue and my local tax office. I am still confused.

Here we go:

I am a postgraduate student, funded by a research council. I do not pay tax on this funding even though it is over the non-tax allowance of ~£4900 - i.e. it is non-taxable.

I have some savings in an easy-access savings account. My question is, do I have to pay tax on the interest? On the R85 form that you need to avoid paying tax on interest, you need to declare income, and if it is over ~£4900, you get taxed. I realise if I had a part time job I would need to declare that income, but since my actual income is non-taxable, do I need to declare it for the purposes of this form? I have no other income.

I'm going bonkers!!! :mad: :mad:

Pleeeeease help me!

mrscruffy

I am coming to the end of my phd so am in the same situaiton, i.e. non-taxable research council grant (which is in excess of £4,900).
All of my bank accounts are registered so as to not have tax deducted.
Hope that is clear!

surfcat

Yep, I'm nerc funded and the income is non-taxable. I spoke to someone from IR who confirmed that your savings accounts can be registered tax-free interest. Remember though, should you be in the (fortunate) situation where any lab teaching, or indeed savings interest alone exceeds the 4900, then you'll need to pay tax on the interest.

Midas

surfcat wrote:

Yep, I'm nerc funded and the income is non-taxable. I spoke to someone from IR who confirmed that your savings accounts can be registered tax-free interest. Remember though, should you be in the (fortunate) situation where any lab teaching, or indeed savings interest alone exceeds the 4900, then you'll need to pay tax on the interest.

Yes the previous posters are correct - funding council grants are not treated as income for tax purposes, so you can earn your personal allowance on top of your grant without paying tax.

Also remember that if you do earn in excess of your personal allowance, the next part of your income (about £1900 I think) is taxed at only 10%. If you've paid too much tax, you can claim it back - just call the revenue for the appropriate form.

jammygreeny

I am a student and have relised because so many cashback sites now have paid to clicks,potentially I could be earning over £50 a week. I am a student and currently unemployed. The biggest thing I am confused about is how much do I have to earn to pay tax? what is that form that every adult goes on about each year? Do I have to prove I am a student?Are paid to clicks illegal? and if I do have to fill in a tax form or whatever it is called what should I put down, I earn from clicking on links on the internet?