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Posted Tue, 22 Aug 2023 09:33:51 GMT by
I have two questions: the first one is related to self-assessment, the second concerns a PAYE starter checklist that I was asked to fill in by my new employer (UK based) for an employment starting in September 2023. The two questions are connected. I am a UK resident and I pay taxes here. From 6 April 2023 the only payment I have got is a four-month scholarship which comes from a university abroad (FOREIGN employer which doesn't have a presence in the UK, as the university is EU-based), it is paid to a bank account which is not UK-based and is not in pounds. Given that, if these payments are subject to taxation, they should count as a foreign income (correct me if wrong). This means that if it were not a scholarship, I would file for self-assessment (tax year 2023/2024) and include these payments as foreign income. But it's a scholarship and in the UK scholarships are usually tax-free. The first question is therefore: 1) Do I need to include the scholarship payments in my self-assessment for the tax year 2023/2024? Now to the second question. I will start a new job in the UK in September 2023 and I need to fill in a PAYE starter checklist. I don't know what to answer when I get the question: "Have you had income from an employer from 6 April 2023?" for the following reason. From 6 April 2023 the only payment I have got is the above-mentioned four-month scholarship which comes from a university abroad and should count as a foreign income (again, correct me if wrong). My employer (the university which awarded the scholarship) is a foreign one, they do not have a presence in the UK nor are they registered as foreign employers in the UK. As previously said, if I had to pay taxes on this money, I would go through the self-assessment and foreign income route. My second question is: 2) In the PAYE starter checklist, when asked the question "Have you had income from an employer from 6 April 2023?", should I say yes or no? I think I should say no, because it's a scholarship and even if I had to pay taxes on it I would go through self-assessment. May you, please, confirm or deny this? Thank you very much in advance for your help.
Posted Fri, 25 Aug 2023 15:24:33 GMT by HMRC Admin 25 Response
Hi Marizoe
1. No the scholarship is not taxable so doesnt need to be declared.
2. your answer is 'NO' as you have not had any UK .
Thank you. 

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