Student loan repayments - divident

[Lance]

I have read that article. I have also read a dozen of others. The information that I am finding is conflicting!

I guess what I am looking for here is for other people in similar circumstances to say what they are ACTUALLY doing.

Ahhh. You want someone to tell you that they're doing what you want to do.
Sorry not me either.


The article you linked doesn't conflict. That's an article for employers to use. That doesn't fit your situation.
Here's another article Limited Companies and Student Loan Repayments | Boox

[pr1]

I have read that article. I have also read a dozen of others. The information that I am finding is conflicting!

I guess what I am looking for here is for other people in similar circumstances to say what they are ACTUALLY doing.

I report all dividends I've paid myself on my self assessment and pay student loan contributions based on total income (salary+dividends) - on my "typical" contractor income, I end up paying around £2k in dividend tax and another £2.4k in student loan contribution per year - the latter essentially being millennial tax as punishment for not being born before the [late] 80s

Welcome to the club

[PerfectStorm]

Paid annually here too - it's quite a lot!

You can look forward to the point where you reach full repayment - whereby both the SLC and HMRC will behave as if this is the first time this has ever happened, and involves multiple phone calls in order to not overpay massively, and lots of to and fro over the final amount.

[Maslins]

You can look forward to the point where you reach full repayment - whereby both the SLC and HMRC will behave as if this is the first time this has ever happened, and involves multiple phone calls in order to not overpay massively, and lots of to and fro over the final amount.

Yup. On the self assessment form it's basically a yes/no box. So if you've earnt £100k but only owe £500 on your student loan, tough. Default is you'd make a repayment of ~£7k, then wait for HMRC to pay to SLC, SLC to calculate then partially repay to HMRC, then HMRC to repay to you.

Our view is as/when the balance gets low, give the SLC a call, find out the balance including interest to that day and clear it by phone debit card payment. That way next SA return you can honestly answer "no" you don't have a student loan.

[MonkeysUncle]

Yup. On the self assessment form it's basically a yes/no box. So if you've earnt £100k but only owe £500 on your student loan, tough. Default is you'd make a repayment of ~£7k, then wait for HMRC to pay to SLC, SLC to calculate then partially repay to HMRC, then HMRC to repay to you.

Our view is as/when the balance gets low, give the SLC a call, find out the balance including interest to that day and clear it by phone debit card payment. That way next SA return you can honestly answer "no" you don't have a student loan.

+1. This
I have just finished paying off my student loan and the final amount i did by setting up a direct debit for the last 3 months (which ended this Oct). This way you dont overpay and have to go through the hassle of claiming it back.

[PerfectStorm]

Yup. On the self assessment form it's basically a yes/no box. So if you've earnt £100k but only owe £500 on your student loan, tough. Default is you'd make a repayment of ~£7k, then wait for HMRC to pay to SLC, SLC to calculate then partially repay to HMRC, then HMRC to repay to you.

Our view is as/when the balance gets low, give the SLC a call, find out the balance including interest to that day and clear it by phone debit card payment. That way next SA return you can honestly answer "no" you don't have a student loan.

That would've been a good way to do it. I instead 'ticked the box' and submitted before October so that HMRC would calculate the accurately remaining amount to close the loan.

This may surprise you - they didn't do anything

[cannon999]

Some very good advice here, thank you guys. Especially about repaying the last bit of the student loan (which won't happen for a while for me unfortunately ha!)

Cheers