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[drspouse]

I'm shortly to examine my first ever PhD externally. The form for claiming my fee gives dire warnings about telling the tax man. Of course, I will doubtless spend this amount, and then some, at some point on work-related expenses that I won't get reimbursed. I can then fill in my tax return and claim it back, but there must be a more direct route.

Has anyone successfully paid their examiners' fees to their department and then used the money for expenses? I've been told if this is done as "consultancy" the university will of course want a cut.

Our departmental adminstrator is a little, er, inflexible and says this is "cheating".

[expatinuk]

I've never been given any option about telling the tax man. The external university demands my national insurance number and then issues me a check that has removed tax money, nhs money and retirement money. My expense check is totally separate.

[drspouse]

I wasn't particularly meaning expenses for the external examiner gig - I was meaning other work-related expenses e.g. conference travel.

[scotia]

I wasn't particularly meaning expenses for the external examiner gig - I was meaning other work-related expenses e.g. conference travel.

I have never done it for working as an external - the only time I asked it was hinted that the admin setup costs would be bigger than the fee (which probably says a lot about the fees for being an external......).

expat - I have only been asked for bank details for acting as an external for courses. For PhDs I have been paid the gross sum and then spent hours explaining the situation to the tax office (the last time the answer was a long way of saying 'please don't tell us, it will cost us more to process than we would get back in tax' - see above comment on the size of fees for PhD examiners!).

Having moved I will no doubt have to go through the whole rigmarole next time I am an external.....

[empyrean_aisles]

On a related note, has anyone ever set up a company and had things like external examiners' fees, payment for guest lecturing etc paid into that (for tax purposes)?

[scotia]

On a related note, has anyone ever set up a company and had things like external examiners' fees, payment for guest lecturing etc paid into that (for tax purposes)?

I haven't, but one of my ex-colleagues, who is also a good friend, has. So did several others with my former employer. If you have any specific questions I could ask my friend about it.

[empyrean_aisles]

On a related note, has anyone ever set up a company and had things like external examiners' fees, payment for guest lecturing etc paid into that (for tax purposes)?

I haven't, but one of my ex-colleagues, who is also a good friend, has. So did several others with my former employer. If you have any specific questions I could ask my friend about it.

Thanks, Scotia - that would be great. (I've been meaning to post a topic here about it for a while, actually.)

I'm essentially wondering:

a) is it legit to do this?
b) is it as simple as setting up a company and then getting other universities to make cheques out to the company name instead of my name (or pay fees into the company's bank account)? Ie. are universities (in UK, Europe & the US) willing to play ball?
c) does it involve other complications like having to declare one's home office a place of work, which I understand will have ramifications for other things like one's mortgage and claiming office supplies as expenses?
d) Do you need an accountant to make it work, or can it be figured out by a reasonably numerate humanist? :)
e) how much do you have to be earning in examiner/external lecturer fees to make the savings on one's tax bill worth the bother? (£1000? £5000? £10 000?)


Just to clarify, I don't make that much! but I've heard of things like summer school teaching where if you do it for the whole summer, you can pick up several thousand pounds.

Sorry, that's quite a few questions. I'm used to a completely different tax system so I feel like I know very little about the UK one.

(PMs welcome if your friend/s don't want to out themselves).

[drspouse]

I wasn't particularly meaning expenses for the external examiner gig - I was meaning other work-related expenses e.g. conference travel.

I have never done it for working as an external - the only time I asked it was hinted that the admin setup costs would be bigger than the fee (which probably says a lot about the fees for being an external......).

Ah - OK - so even if admin lady didn't scream blue murder about anything she didn't understand (I think she also thinks it is pretty dodgy for me to claim back non-recompensed expenses on tax), it might not be worth it.

If I do get consultancy from other sources, I might look into the setting up a company idea.  mrspouse is handy with an accounts spreadsheet, and we have two rental properties, so it is not outwith our experience.

[snape]

I set up my own company in the days when I wrote a few non-academic articles for (not a lot of) money. All you need to do is register as self-employed with the Inland Revenue. You will have to fill in an annual tax return if you don't already.
The name of the company can be your own name e.g. drspouse, so no-one needs to know who to pay the cheque to.

[embitteredhistorian]

So how much are external examiner fees? I'm far too humble to be asked to do this, but I'm curious (and nosy).

[empyrean_aisles]

I set up my own company in the days when I wrote a few non-academic articles for (not a lot of) money. All you need to do is register as self-employed with the Inland Revenue. You will have to fill in an annual tax return if you don't already.
The name of the company can be your own name e.g. drspouse, so no-one needs to know who to pay the cheque to.

Thanks for the extra info, Snape - could you clarify whether you were *also* employed at the time? (ie. simultaneously on an institution's payroll and registered as self-employed?)

[drspouse]

So how much are external examiner fees? I'm far too humble to be asked to do this, but I'm curious (and nosy).

In the £100-200 range as far as I can tell.

[snape]

I set up my own company in the days when I wrote a few non-academic articles for (not a lot of) money. All you need to do is register as self-employed with the Inland Revenue. You will have to fill in an annual tax return if you don't already.
The name of the company can be your own name e.g. drspouse, so no-one needs to know who to pay the cheque to.

Thanks for the extra info, Snape - could you clarify whether you were *also* employed at the time? (ie. simultaneously on an institution's payroll and registered as self-employed?)

I was registered as self-employed whilst employed full time. No need to tell the university. For the record I am no longer self-employed.