Usually this means a part time PhD which lasts 5 years instead of 3. Your salary will be higher than a PhD salary - but lower than your current salary(as this is part time, too). But you don't pay tax on your salary as a student so this doesn't work out too bad.
As a salaried member of University staff (rather than a student receiving a bursary) I'm afraid that you do pay tax. Research Assistant posts can be registered for a full-time or part-time PhD so you should check whether you will be a part-time or full-time student. If part-time, the fees will be considerably cheaper.
Firstly you should talk with your potential supervisor. They may be able to find funds to cover your fees and will explain what would be expected of you. It is likely that you'll register as a part time student, but you should still remain on a full time wage. As Ann has said this will be taxed as normal. Part time fees are much lower than full time ones and depending on how your work is structured may still allow you to finish within 4 years.
How long have you been working for the university? Quite a few uni's will fund a part time phd (i.e. pay your fees, which should be less than full time fees) if you have been working there for at least two years. Try talking to someone in the research commitee or postgrad admin that might be aware of this.
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