[foundation-board] Panton Fellowships operations - RFC

Thu Jan 5 16:17:11 UTC 2012

On 5 January 2012 16:13, Ben Laurie <ben at links.org> wrote:
> On Thu, Jan 5, 2012 at 3:49 PM, Becky Hogge <becky.hogge at gmail.com> wrote:
>> If the former, it strikes
>> me that regulation BIM65155 (in general, awards and grants are not
>> taxable) applies to this money, and in any case, the matter will be
>> for the Fellow and not for us. If the latter, the wording you've
>> included looks similar enough to contracts I have signed that exempt
>> my co-signers from being liabile for my tax affairs for me not to be
>> concerned.
>
> It is not possible to sign away employer's PAYE liability.

I work as a contractor and routinely sign contracts which indicate I
am not an employee, and therefore that I am responsible for my own tax
affairs.

>
>>
>> Cheers
>>
>> Becky
>>
>> On 3 January 2012 13:16, Laura James <laura.james at okfn.org> wrote:
>>> Many apologies - I meant OSI not shuttleworth. Please write this off
>>> as first day of year confusion.
>>>
>>> On the question of the OSI intent, we are certainly doing what we said
>>> we'd do in the grant application, but I haven't seen a formal funding
>>> agreement.  Rufus - any ideas where this might be?  Doesn't seem to be
>>> in google docs or dropbox.
>>>
>>>
>>> On 3 January 2012 11:53, Ben Laurie <ben at links.org> wrote:
>>>> On Tue, Jan 3, 2012 at 11:14 AM, Laura James <laura.james at okfn.org> wrote:
>>>
>>>> a) The agreement doesn't seem to say they need to follow the
>>>> principles themselves, which seems a little odd.
>>>
>>> Good point, I'll get that added in :)
>>>
>>>> b) "This is not employment" - is that sufficient to avoid tax
>>>> liability (particularly PAYE)? Have we checked?
>>>
>>> This is a somewhat opaque area, but some relevant material is included
>>> below. Since we are not asking for services (although clause 11 in the
>>> agreement could perhaps be read as such), and this is a grant/award to
>>> researchers, in the mould of similar schemes, I feel this we are OK
>>> and exempt from PAYE etc in this case, but if you'd like me to dig
>>> into this further I can.
>>>
>>> Laura
>>> Laura
>>>
>>>
>>>
>>>
>>>
>>> http://www.hmrc.gov.uk/manuals/eimanual/EIM06250.htm
>>>
>>> EIM06250 - Employment income: scholarship income: miscellaneous
>>> awards: research awards or fellowships
>>>
>>> Section 776 IT(TOI)A 2005 (Section 331 ICTA 1988)
>>> Research awards or fellowships are sometimes offered to qualified
>>> individuals, who have normally completed their post-graduate training,
>>> to enable them to undertake a specific research project over a fixed
>>> period.... Whether payments made to the holder of the award or
>>> fellowship are chargeable to tax will depend on the particular facts.
>>> There is unlikely to be a contract of employment. If the holder of the
>>> award is engaged under an enforceable contract to provide services,
>>> for example, to research a particular project, in return for a fee any
>>> liability to tax will be under the Miscellaneous Income rules (see
>>> BIM65151).
>>>
>>>
>>> http://www.hmrc.gov.uk/manuals/bimmanual/BIM65155.htm
>>>
>>> BIM65155 - Research grants and fellowships: British Academy
>>> As a result of discussions with the British Academy, the Board have
>>> agreed that in general, awards and grants are not taxable. Where,
>>> however, such awards are received in the course of the beneficiary's
>>> profession or vocation, advice should be obtained from Business Tax
>>> (Technical). As regards other awards see SE06200 and following, and
>>> BIM50710.
>>>
>>> _______________________________________________
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>>
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