Do I have to pay tax on scholarships and awards?

Updated on 7 April 2020

Students

Student loans are tax free and nearly all scholarships and awards are also free of tax. Further guidance on student loans is provided in our student loans section. 

student scholarship (c) Shutterstock / PhuShutter
(c) Shutterstock / PhuShutter

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.