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Posted Fri, 24 May 2024 16:46:38 GMT by GravityM
Hi there, I'm just curious if there are any tax implications for compensation received from partaking in a medical research trial? I'm a full time employee earning 23,500 not inclusive of bonuses, but I wouldn't enter the higher tax bracket regardless. The medical trial compensation would be 3,180 and wouldn't put me in the higher tax bracket either. From this 3,180, I have spent roughly 250 on trains for the actual medical trial and a follow-up visit 28 days later. So my questions are - 1. Would the compensation that I receive need to be taxed? 2. If the compensation is taxed, would £1000 of it fall under the £1000 tax free 'sole trader'? I went through the HMRC 'Check if you need to send a Self Assessment tax return' and none of the options really applied for a medical trial, hence it said that I don't need to send a self-assessment form. It is one-off compensation and it's not a regular thing that I've done. Appreciate any advice and guidance.
Posted Wed, 29 May 2024 10:22:16 GMT by HMRC Admin 21
Hi GravityM,
Please refer to the following Guidance - Employment Income Manual EIM71105.
Thank you.
Posted Wed, 29 May 2024 10:44:00 GMT by GravityM
Hi there, Thank you for linking that. I'm now aware that the excess will be taxable as miscellaneous income, but that article doesn't mention anything about the trading allowance of £1000, so I'm just looking for clarification if that would apply in this case or not. As it's going down as 'miscellaneous income', I'd imagine that that allowance would be in place, but I'm not 100% sure.
Posted Tue, 04 Jun 2024 07:39:54 GMT by HMRC Admin 19

The trading allowance does not apply as this is not a trade.

Thank you.

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