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<blockquote data-quote="trainee4u" data-source="post: 214533" data-attributes="member: 30779">See[URL unfurl=&quot;true&quot;]https://www.legislation.gov.uk/ukpga/2005/5/section/776[/URL](1)No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.HMRC say:[URL unfurl=&quot;true&quot;]https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim06225[/URL]Where the rate of remuneration (inclusive of lodging, subsistence and travelling allowances, but exclusive of fees payable by the employee to the university etc.) exceeds the limits set out above, do not accept that the trainee/student is in receipt of scholarship income. You should obtain copies of contracts between the trainee/student and the employer/sponsor and an explanation of how the level of payments has been calculated. It is likely that the amounts exceed what may genuinely be described as scholarship income or educational maintenance. In consequence the payments are likely to be earnings from the employment and should be taxed in full. Prior to 2005, &quot;For academic years ending on or before 31 August 2005 the limit was set at £7,000 or an amount which a public awarding body such as a Research Council, would have granted to a student with similar personal circumstances. &quot;In 2005 it was increased to £15,000, and in 2007 to £15,480.It has not been increased since 2007.£15,480 in 2007 is around £30.3k today!Therefore, while anything over £15,480 is technically &quot;subject to explanation&quot; because it might be disguised remuneration, it's really unlikely that law firms would do anything that puts them at risk of NI liability in respect of the sums, but if one were to be awarded an absurdly large bursary (£30k+, for example), it seems possible.....</blockquote>

[QUOTE="trainee4u, post: 214533, member: 30779"] See [URL unfurl="true"]https://www.legislation.gov.uk/ukpga/2005/5/section/776[/URL] [I](1)No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.[/I] HMRC say: [URL unfurl="true"]https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim06225[/URL] [I]Where the rate of remuneration (inclusive of lodging, subsistence and travelling allowances, but exclusive of fees payable by the employee to the university etc.) exceeds the limits set out above, do not accept that the trainee/student is in receipt of scholarship income. You should obtain copies of contracts between the trainee/student and the employer/sponsor and an explanation of how the level of payments has been calculated. It is likely that the amounts exceed what may genuinely be described as scholarship income or educational maintenance. In consequence the payments are likely to be earnings from the employment and should be taxed in full. [/I] Prior to 2005, "For academic years ending on or before 31 August 2005 the limit was set at £7,000 or an amount which a public awarding body such as a Research Council, would have granted to a student with similar personal circumstances. " In 2005 it was increased to £15,000, and in 2007 to £15,480. It has not been increased since 2007. £15,480 in 2007 is around £30.3k today! Therefore, while anything over £15,480 is technically "subject to explanation" because it might be disguised remuneration, it's really unlikely that law firms would do anything that puts them at risk of NI liability in respect of the sums, but if one were to be awarded an absurdly large bursary (£30k+, for example), it seems possible..... [/QUOTE]

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