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Posted Fri, 22 Dec 2023 00:00:27 GMT by fellow75
Hi, I am currently undertaking a fellowship at a university and I am paid a grant/stipend to cover living costs, accommodation, travel and materials etc. Do I need to include this as income in a self-assessment?
Posted Wed, 03 Jan 2024 11:20:16 GMT by HMRC Admin 21
Hi fellow75
The concepts of “earnings from an office or employment and “income from a scholarship” are mutually exclusive. An amount paid as salary or wages is distinct from an amount awarded and paid to an individual under a scholarship.  If there is no office or employment then the income cannot be taxable as employment income. In order to tax the payments as employment income you must be able to demonstrate that the income was received in respect of an office or employment and not under a contract of training.  For this reason, the vast majority of bursaries and scholarships in the UK are not taxable.
Thank you.
Posted Wed, 03 Jan 2024 11:33:05 GMT by fellow75
Hi, thank you very much for responding to my enquiry. Would it be possible to clarify what the term "no office or employment" means with regards to the fellowship grant awarded to me? Under my agreement with the university, it states the following terms: "this Agreement is not intended to be a contract of employment, and you will not be an employee or worker of the University during your Fellowship. The University is not obliged to provide you with any work." And I will "Not be expected to work any set hours" If this is the case, does that mean that the grant is not considered "earnings from an office or employment"? Kind Regards
Posted Wed, 10 Jan 2024 12:14:41 GMT by HMRC Admin 10
The office or employment would mean that you have a contract to work for the company.
As the agreement confirms you dont then the grant is not considered earnings from an office or employment.

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