Student loan repayment - self assessment

[spottyseagull]

Did my wife's self assessment, first tax year where she was a director in the company.
It seems the dividend payments for the tax year have taken her over the threshold for student loan repayments and it's added £2k to her tax bill.
Anyone else experienced this, I was a bit naive and hadn't considered this. Anyway I can avoid paying in one lump and repay in installments instead?.

[pr1]

Did my wife's self assessment, first tax year where she was a director in the company.
It seems the dividend payments for the tax year have taken her over the threshold for student loan repayments and it's added £2k to her tax bill.
Anyone else experienced this, I was a bit naive and hadn't considered this. Anyway I can avoid paying in one lump and repay in installments instead?.

If the dividend payments only "just" took her over the threshold (19k) then the bill would be no way near 2k, it would only be 9% of whatever was over 19k (assuming she graduated before 2015)

It sounds like she's received ~41k (9% of (41000-19000) ~ 2000)
edit/clarification: ~41k total income, not necessarily just your dividends

AFAIK there's no 'normal' way of paying it instalments instead but if you're really going to struggle to pay it I suppose you could contact HMRC and ask them, they'd rather get some money than no money but it would probably put you under a spot light

[northernladuk]

And some say accountants are expensive.

[missinggreenfields]

Anyway I can avoid paying in one lump and repay in installments instead?.

No.

HTHBIDI

[TheCyclingProgrammer]

Ah, rookie error.

If you genuinely can't afford to pay it then like anyone else she needs to speak to HMRC and arrange a payment plan. As somebody else said, they'd prefer it gets paid off in instalments than not at all.

Now you've made the mistake, you hopefully won't make it again and will remember to set aside any student loan repayments on top of any taxes due each time you declare a dividend.

[Lance]

Did my wife's self assessment, first tax year where she was a director in the company.
It seems the dividend payments for the tax year have taken her over the threshold for student loan repayments and it's added £2k to her tax bill.
Anyone else experienced this, I was a bit naive and hadn't considered this. Anyway I can avoid paying in one lump and repay in installments instead?.

You could just ignore it as it's her problem not yours

[northernladuk]

You could just ignore it as it's her problem not yours

Now THAT is what you call quality advice!!! Booooom!

[TheBA]

And some say good accountants are expensive.

FTFY

Mine hasn't mentioned anything about repaying my student loan

[SueEllen]

You could just ignore it as it's her problem not yours

D I V O R C E can be very expensive.