Working post-submission / pre-defending - tax etc?

M

Hi everyone,
Long-time lurker here! Had a search for this subject but couldnt find anything so here goes

I submitted my PhD couple weeks ago and will be defending at the beginning of May, and have just been offered a job starting next week, so all good things! However, as I submitted my thesis well before the deadline, I'm still registered as a student for a while and my employer thinks I need to deregister first before I can enter employment, for tax reasons? This never occured to me, and was wondering if anyone else had encountered this?

Perhaps I should contact my board of grad studies, but I didnt want to raise alarm bells with them if not needed.

Anyway thanks for any advice!

H

I'm not sure, but I would have thought you do not cease to be a student until you've defended and any corrections are signed off, so would have to say registered until then. There is nothing stopping you from working in the mean time, but some HR department will need to assign you a tax code.

I don't think you need to have been 'discharged' from your current uni in order to get a tax code. After all, people have part time jobs and study full time, or vice versa, so the two statuses are not mutually exclusive.

T

I think you cease to be a student as soon you as you take a fulltime job because then you are going to be eligible to pay tax once you have passed the personal allowance threshold.

Being registered as a student at a university isn't a legal status - there is no national register of students that the university contribute to so there is no way the government know who is a student and who is not unless you tell them (council tax is a separate issue and I am aware universities send updates to the council for this).

As HazyJane says, you can take a fulltime job any time even if you are a fulltime student.

S

I'd second HazyJane's wisdom here. I would add that my current position is "post viva-corrections approved-thesis deposited in library-awaiting degree certificate" and I am still holding on to my student status like grim death. I still appear to be registered and am currently getting pestered by the students union to vote in upcoming student elections, so I can substantiate this. As far as I'm concerned, my last day as a student will be the date on my degree certificate.

In fact your future employer's position is nonsense and I am guessing the person you're dealing with is unfamiliar with the procedure. Is this an academic institution? By "de-registering" as a student you would be withdrawing from your studies, so an unreasonable expectation at this stage. I have seen one or two people start post-doc jobs prior to their defence without problems (at least, not that I'm aware of). Just explain it to them or deal with someone who knows what they're talking about. As a last resort, you could always insist on being paid in cash - which you have a legal right to do - and say you'll submit your own tax return rather than PAYE.

BTW congratulations!

H

Sorry, my wording was ambiguous - the other two are both right.

Basically you continue to be a student from the university's point of view until your PhD is properly viva-d and signed off.

You cease to be a student from a tax point of view when you commence a full time job.

I see no reason why the latter requires you to formally de-register.

C

I spoke to HMRC recently about my tax code for the purposes of doing part-time work while I was a student. The way they explained it was really straightforward - I have the same personal tax allowance as any other working person, and my student funding is separate and non-taxable. HMRC is only interested in your taxable earnings, so I agree with others here that your employer has it wrong and no 'de-registration' is needed.

Avatar for Mackem_Beefy

Quote From magicbeans:
Hi everyone,
Long-time lurker here! Had a search for this subject but couldnt find anything so here goes

I submitted my PhD couple weeks ago and will be defending at the beginning of May, and have just been offered a job starting next week, so all good things! However, as I submitted my thesis well before the deadline, I'm still registered as a student for a while and my employer thinks I need to deregister first before I can enter employment, for tax reasons? This never occured to me, and was wondering if anyone else had encountered this?

Perhaps I should contact my board of grad studies, but I didnt want to raise alarm bells with them if not needed.

Anyway thanks for any advice!


I assume you are UK based?

If you are earning a wage or salary of any kind, the taxation and national insurance is the same whether or not you are a student. If you had a job outside your studies, you would still be expected to pay tax and national insurance on earnings from that job. The Inland Revenue does not distinguish between them.

If you deregister as a student, you are effectively quitting your PhD so would be a stupid thing to do. You could reregister as an external candidate, however, this is extra unnecessary administration that is not needed and will make no difference as regards tax. I suggest you ask your prospective employer to contact the Inland Revenue to clarify the situation themselves.

Ian (Mackem_Beefy)

M

Hi everyone,

Thanks so much for all the replies. I think my propsective employer was indeed mistaken - having talking to the HR dept, you were all correct, the 'student' status is not an issue, as soon as you start working full time you are eligible for tax. Anyways, its all sorted with them now for me to start!

Thanks again!

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