⚠️ Our Tax Guide for Students guidance has moved to the LITRG website. If you are a student or have a student loan and have a query about any of the issues we cover in this section, please let us know by filling in the Contact Us form.

Do I have to pay tax on scholarships and awards?

Updated on 12 April 2021

Students

Student loans are tax free and nearly all scholarships and awards are also free of tax.

Illustration of books, graduate cap and coins

Are scholarships or awards taxable income?

Students receiving scholarships are advised to get confirmation, in writing, from the donor that the amount is, in fact, tax free.

If this is so, it is likely that the scholarship or award will not be treated as income for tax credits purposes. Certain specific adult dependants' grants do affect tax credits and you should check the notes or contact HM Revenue & Customs (HMRC) to see whether this applies.

There is more information on how universal credit entitlement may be affected by any other income on the Revenuebenefits website that is also maintained by us.

There is information on ‘employer-sponsored courses’ in our volunteering and training section.

Where can I get more information on student loans?

Further guidance on student loans is provided in our Student loans section.

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