Hi everyone

I was so lucky to get a PhD stipend. Every year I receive the amount of 12300 pounds. Currently I am planning my finances, so I need to know how much money I have available each month. Can somebody tell me how much taxes and insurance I have to pay from this amount of money? How much money do i effectivly have to spend each month.

Thanks for helping me with this issue
Patrick

BTW it is a grant awarded by EPSRC

So in other words i can pay the 11% for the national insurance so that I can get treatment from a doctor? But I dont have to pay the 22% income tax? That would be great ;)

You pay no tax or national insurance on your stipend. You do not have to pay national insurance contributions to recieve free medical treatment on the NHS, but it may affect your state pension entitlement.

Actually, I'm not sure of the exact position on National insurance contributions re. pension entitlements. Any financial advisors out there?

If you're really keen, budget to pay into a private pension fund to make up for not having a pension from an employer for 3 years. This is rather good as even though you don't pay tax on your stipend, pension contributions still qualify for tax relief. E.g. if you contribute £78 a month to a pension, the government top it up by £22 to £100...more free money!

I pay national insurance as a self employed person, its about £8 a month and worth doing. You can ring your local tax office for advice on setting up a direct debit.