Tax treatment on a monthly stipend paid in the UK

Myself and several others have recently enrolled on a "venture builder programme" in the UK that is being run by a venture capital fund. There are quite a few of these operating. On our programme there is no employment contract, but for the first six months we are paid a "stipend" of around £2,200 a month, which is intended to cover expenses such as lodging, food and travel. There is no clear guidance as to whether this would be treated as taxable income. One person's accountant has claimed that because it is for expenses, and is not paid as part of an employment contract or for services rendered, it would not be taxable. Could anybody shed some light on this?

Hi,

It would depend on the terms and conditions of the employment to which it realtes. You can see guidance here:

EIM06271 - Employment income: scholarship income: awards to researchers by the European Union

Thank you.

Hi there, thanks for replying. However, there is no employment contract in this case. I and the others on the programme have signed a Founders Agreement relating to the treatment of IP, but the payment is clearly defined as a “stipend” that is paid monthly for continued attendance/participation on the programme. There are no obligations to continue to participate, and no specified delivery of hours/services in exchange for the stipend payment. So it is clearly not an employment contract. And since the payment is not for services rendered, it does not neatly class as self-employed income.

Hi O-Jay,
Please refer to additional guidance here:
EIM06210 - Employment income: scholarship income: payments taxable as employment income?
Which leads to:
BIM65151 - Research grants and fellowships: overview
Thank you,