Hi,

I'm a 37 year old married father of four and have managed to secure some funding to take a year off work to study an MSc. I mention the kids, as to do this course I need substantially more funding than the average student.

I have now secured £30k sponsorship from a third party, i.e. not my current employer, and they are happy to provide this with no requirement for me to work beyond the study period, however would own any work that I produce during this year, and the Uni have agreed to this.

The sponsoring company has asked me to look into taxation on this sum, I've called the Inland Revenue, but couldn't get a straight answer, has anyone any experience of above average sponsorship and how the Government class this in the case of tax? or any other advise? All would be gratefully received.

If more detail is required, please get back to me and I’ll endeavour to provide it.

Regards,

Dave

I'm not sure how sponsorship paid directly to you would be treated by the inland revenue, by the sound of things neither are they. If your sponsoring organisation makes the award direct to your university this should at least take the fees part of the award out of taxation. The university research office should be able to help you find the best way to deal with this.