Paying tax whilst using a stipend



I have been offered a funded part-time PhD, which comes with a tax-free stipend, I currently work full time.

I am planning to formally reduce my contracted days to 4 a week, and will go down to 0.8 FTE on my salary.

Will I need to pay any additional tax on my salary by receiving the tax-free stipend? My 0.8 FTE will still keep me above the tax-free threshold. I am not expecting to pay any tax on the stipend, but I can't seem to find any clear information on what impact receiving it will have on the taxable side of my income.

Any advice would be greatly appreciated, thank you!

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A PhD bursary is tax free and doesn't count towards your personal allowance, so shouldn't affect your job. I have been told that it can sometimes affect your benefits through universal credit but not HMRC. Though if you are getting a full bursary will you be allowed to work 0.8 FTE? My bursary expressly stated that I was limited to 20 hours work a week outside work and I think it is UK Research Council rule.