Student Loans And Contracting

[joey122]

Does anyone know how this works?

Given that student loans are deducted from your salary only if you earn more then 15K, can you delay paying them if you pay yourself a salary of 6K and the rest in dividends?

[DiscoStu]

Does anyone know how this works?

Given that student loans are deducted from your salary only if you earn more then 15K, can you delay paying them if you pay yourself a salary of 6K and the rest in dividends?

No. You have to declare any other income if you want to defer them. This includes dividends.

[bambi]

student loan repayments and dividends

I am a health worker and the inland revenue deduced student loan repayments immediately after I qualified in 2001. I then began working as a contractor and was paid a basic salary, plus dividends, via an umbrella company and had no repayments deducted from my salary. Not sure why, but this continued until 2 years ago when I set up a limited company and my accountant completed a self-assesment on my behalf. I have been earning below £26,000 so maybe payments were automatically deferred for the 5 years. It's a minefield out there!

[Waldorf]

I know this one because I queried it with my accountant.

The loan is repaid at 9% of all income above £15,000 - and this includes dividends