[foundation-board] Panton Fellowships operations - RFC

[Ben Laurie]

On Thu, Jan 5, 2012 at 4:23 PM, Becky Hogge <becky.hogge at gmail.com> wrote:
> On 5 January 2012 16:17, Becky Hogge <becky.hogge at gmail.com> wrote:
>> 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.
>
> But it's also true that the revenue would hold us liable for tax in
> any case, if it turned out that we were treating the fellows as
> employees (they had no other source of income, worked using our
> facilities etc).

Precisely.

> In this case I think I don't think we run the risk of
> that, particularly as we're stipulating that they should have paid
> work concurrent with the fellowship.

Again, you cannot contract away your liability!

I am reasonably sure it's fine, but I get less sure when I hear things
like this :-)

>>
>>>
>>>>
>>>> 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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