Loan transfer

[NomDePlum]

I was wondering if it is possible for transfer my student loan from SLC to my limited company. i.e. The limited company would pay off the outstanding amount on my student loan and I would then pay the this amount to my limited company over an agreed period and at an agreed interest rate.

It just seems silly to me to be paying interest to another body when my limited company could be gaining the benefit.

Does anyone think this is possible/usual business practice?

It would also allow me to spread my payments over a longer period with no real downside as the limited company would benefit via interest accrued.

I intend to talk to my accountant about it but would like anyones views/inputs.

[malvolio]

I was wondering if it is possible for transfer my student loan from SLC to my limited company. i.e. The limited company would pay off the outstanding amount on my student loan and I would then pay the this amount to my limited company over an agreed period and at an agreed interest rate.

It just seems silly to me to be paying interest to another body when my limited company could be gaining the benefit.

Does anyone think this is possible/usual business practice?

It would also allow me to spread my payments over a longer period with no real downside as the limited company would benefit via interest accrued.

I intend to talk to my accountant about it but would like anyones views/inputs.

Check with an accountant, but as a general prinicple it's a very bad idea to muddle up personal and company money. You may be OK, but there may be a BIK and ISTR there are rules about how student loans are managed.

[Sockpuppet]

I was wondering if it is possible for transfer my student loan from SLC to my limited company. i.e. The limited company would pay off the outstanding amount on my student loan and I would then pay the this amount to my limited company over an agreed period and at an agreed interest rate.

It just seems silly to me to be paying interest to another body when my limited company could be gaining the benefit.

Does anyone think this is possible/usual business practice?

It would also allow me to spread my payments over a longer period with no real downside as the limited company would benefit via interest accrued.

I intend to talk to my accountant about it but would like anyones views/inputs.

It would probably be easier to take a large dividend and pay it off in one go.

[DaveB]

If the Student Loan is less than 5k you could take a directors loan and pay it off then pay back the directors loan to the Co. Over 5k and BIK rules come into effect and it's not worth it.

[Nixon Williams]

I was wondering if it is possible for transfer my student loan from SLC to my limited company. i.e. The limited company would pay off the outstanding amount on my student loan and I would then pay the this amount to my limited company over an agreed period and at an agreed interest rate.

It just seems silly to me to be paying interest to another body when my limited company could be gaining the benefit.

Does anyone think this is possible/usual business practice?

It would also allow me to spread my payments over a longer period with no real downside as the limited company would benefit via interest accrued.

I intend to talk to my accountant about it but would like anyones views/inputs.

You seem to be trying to make the simple hard!

I would not mix up the two, if you want to pay the loan off, do so from your own sources via dividend etc.

Alan

[tim123]

I don't get why there is any advantage to doing this (even if it were simple).

Either one has the cash in the company to pay if off (so take the money out legitimately and do so).

Or one does not, in which case leaving it in the SLC is usually a better deal, interest wise, than can be got elsewhere.

tim

[TheFaQQer]

If you are paying yourself via low income and dividend model, do you even need to pay it off?

I thought you only pay it off if you earn over a certain threshold, and it comes through PAYE. If you don't earn more than the threshold (as Mrs Faqqer doesn't), you don't need to pay it back. So what if it accrues interest - if you're never going to pay it, and it gets written off eventually (which they all do!), it's no big deal.

[Sockpuppet]

If you are paying yourself via low income and dividend model, do you even need to pay it off?

I thought you only pay it off if you earn over a certain threshold, and it comes through PAYE. If you don't earn more than the threshold (as Mrs Faqqer doesn't), you don't need to pay it back. So what if it accrues interest - if you're never going to pay it, and it gets written off eventually (which they all do!), it's no big deal.

The SLC count divs as part of the £15k. Saying that I know a mate who is getting 15k basic as a rec consultant and another 65k on top and he does pay any of it.

Fair enough its his first year but I can see the SLC coming asking for a lot of money soon (by my calcs - £2080 for this year)

[TheFaQQer]

Sorry - take it back! I assumed that since it was taken through PAYE, then dividends don't count. That's completely wrong though, since you can also pay it as self-assessment. The Mrs. doesn't receive any dividends, so it doesn't affect her - I just have to watch in the future if she does.

So - I'll stick with what Alan said:

If you want to pay the loan off, do so from your own sources via dividend etc.

Alan

Personally, I wouldn't pay it off, since it's a low interest rate that you are paying and if you have the cash to do it, it's better off being invested or earning interest. There are some thoughts / advice on paying off your student loan on moneysavingexpert.com