Double checking my personal Tax... student loans

[d000hg]

Firstly, just to double-check my understanding. Last year I received salary from MyCo of £11k and took dividends totalling £31.5k. I reckon this is classed as gross income of 11000+31500/0.9 ~ £45k. Minus about £40k tax brackets means around £5k is taxable, i,e about £1000 tax. Sound about right?

Secondly, I have about £10k student loan outstanding, and it's a modern income-tested one from 2000-2003. I can't find a quick answer of how much they will be owed or a contractor-friendly SL calculator. One thing I'm fairly sure of is that they will not be considering salary alone, can anyone point me to link explaining it clearly?

I did find this on MoneySavingExpert:

If you're self employed and calculate your tax returns by self assessment, you'll need to send a year's worth of student loan repayments at the end of the tax year (still 9% of all income above £15,000) to HM Revenue & Customs

But I'm still not clear. What is 'income' here? Gross salary + gross dividends would be £45k so worst-case I'd be paying 9% of £30k = £2700?

[dx4100]

Firstly, just to double-check my understanding. Last year I received salary from MyCo of £11k and took dividends totalling £31.5k. I reckon this is classed as gross income of 11000+31500/0.9 ~ £45k. Minus about £40k tax brackets means around £5k is taxable, i,e about £1000 tax. Sound about right?

Secondly, I have about £10k student loan outstanding, and it's a modern income-tested one from 2000-2003. I can't find a quick answer of how much they will be owed or a contractor-friendly SL calculator. One thing I'm fairly sure of is that they will not be considering salary alone, can anyone point me to link explaining it clearly?

I did find this on MoneySavingExpert:

But I'm still not clear. What is 'income' here? Gross salary + gross dividends would be £45k so worst-case I'd be paying 9% of £30k = £2700?

My accountant tells me to put away roughly 10% of all my divs to cover it. The £2700 figure is probably about right.

[BlightyBoy]

Personally I think it's atrocious that you should even be considering how to not repay your student loans, at least that is how your post reads to me.

Outrageous.

[Alan @ BroomeAffinity]

WHS.

I didn't go to uni but learnt my trade earning sh*tty money and running up debt which I paid off at commercial rates.

[Moscow Mule]

Personally I think it's atrocious that you should even be considering how to not repay your student loans, at least that is how your post reads to me.

Outrageous.

You must be very cynical.

It reads to me like he wants to know how to calculate how much to pay towards his student loan - pretty non-standard and reasonable question IMO.

[Moscow Mule]

WHS.

I didn't go to uni but learnt my trade earning sh*tty money and running up debt which I paid off at commercial rates.

Unlucky...

You're probably doing alright now though?

[d000hg]

You must be very cynical.

It reads to me like he wants to know how to calculate how much to pay towards his student loan - pretty non-standard and reasonable question IMO.

I wouldn't know how to avoid paying it, and I've no idea how anyone got that impression from my post. I just want to be sure the money I set aside in April is enough, and if there is a surplus I can safely use... before getting official answers from my accountant when he does my return.

[Hex]

Firstly, just to double-check my understanding. Last year I received salary from MyCo of £11k and took dividends totalling £31.5k. I reckon this is classed as gross income of 11000+31500/0.9 ~ £45k. Minus about £40k tax brackets means around £5k is taxable, i,e about £1000 tax. Sound about right?

Secondly, I have about £10k student loan outstanding, and it's a modern income-tested one from 2000-2003. I can't find a quick answer of how much they will be owed or a contractor-friendly SL calculator. One thing I'm fairly sure of is that they will not be considering salary alone, can anyone point me to link explaining it clearly?

I did find this on MoneySavingExpert:

But I'm still not clear. What is 'income' here? Gross salary + gross dividends would be £45k so worst-case I'd be paying 9% of £30k = £2700?

It may, or may not, be relevant but if you're taking dividends from a UK Company that you work from then this does NOT make you self employed. You are probably an employee of your Ltd Company. Of course, this may not affect the student loan stuff at all.

[d000hg]

I believe dividends are treated as income in a similar fashion as for establishing personal tax but it's one of the things I can't find a clear answer to. I'm not sure why that is, there must be loads of people in their late 20s (the scheme I'm on was introduced in '98) who own a business.

[d000hg]

I found this other thread on the subject: http://forums.contractoruk.com/accou...repayment.html

Consensus seemed to be dividends are treated as income but nobody posted any links specifically about being a company director, and the HMRC/SLC wording is either that you're employed or self-employed.

I'm expecting to be paying it but it would be nice to see something official in back and white, and also to know what my income is as far as SL is concerned... gross salary (obviously) + gross or net dividends? Dividends are 'unearned income' it seems under SLC wording so it's not clear at all to me.