Student Loans

[davidc123]

Hi,

I've been trying to get an answer from HMRC on this but after being passed around and given about 10 different phone numbers to try, no one seems to have a clue.

When I became a contractor (over a year ago) the student loans company insisted that my student loans repayment would be calculated when I do my personal tax return, and would be based on both my personal income and that of my ltd company. Recently I've been trying to get some confirmation of this, but SLC say speak to HMRC and the people on HMRC's phonelines don't have a clue.

On my last tax return I didn't see how they could possibly include my ltd company's income in the calculation since I don't enter it anywhere. So I'm wondering if anyone else has any experience of this?

Thanks
David

[Clare@InTouch]

The loan repayment is based on your total income, so salary plus dividends. Presumably that's what they meant by company income - dividends.

[BolshieBastard]

Hi,

I've been trying to get an answer from HMRC on this but after being passed around and given about 10 different phone numbers to try, no one seems to have a clue.

When I became a contractor (over a year ago) the student loans company insisted that my student loans repayment would be calculated when I do my personal tax return, and would be based on both my personal income and that of my ltd company. Recently I've been trying to get some confirmation of this, but SLC say speak to HMRC and the people on HMRC's phonelines don't have a clue.

On my last tax return I didn't see how they could possibly include my ltd company's income in the calculation since I don't enter it anywhere. So I'm wondering if anyone else has any experience of this?

Thanks
David

You mean you didnt disclose any income from your co on your tax return!?

In my experience (actually my son's SL) the SLC dont have a ******* clue, full stop and it's a waste of time contacting them for anything.

[Nathan SJD Accountancy]

I agree with Clare.

David. In the event (for whatever reason) you didn't state that student loan deductions needed to be taken into account on your personal tax return and you were supposed to. HMRC would get in touch automatically with a revised calculation letting you know how much you owed them as result of the student loan deductions.

[davidc123]

Thanks for the replies. I did declare my income from my company, and ticked the box stating I need to pay student loans.

But my worry is that my personal income is quite small compared to my company's, so if my calculated repayments were going to be small I wanted to pay extra myself. I asked SLC and they assured me (twice) that repayments are calculated from my personal income and my company's p/l. Sounded odd to me but they insisted...

since hmrc seem to be very confused by this I'm starting to realise slc were probably wrong...

[davidc123]

I agree with Clare.

David. In the event (for whatever reason) you didn't state that student loan deductions needed to be taken into account on your personal tax return and you were supposed to. HMRC would get in touch automatically with a revised calculation letting you know how much you owed them as result of the student loan deductions.

Also a question for Nathan, is this something that SJD should be able to advise a client on or is it out of their expertise?

[Greg@CapitalCity]

I asked SLC and they assured me (twice) that repayments are calculated from my personal income and my company's p/l. Sounded odd to me but they insisted...

since hmrc seem to be very confused by this I'm starting to realise slc were probably wrong...

Yes, they are. The repayments are calculated through your personal tax return, based on your personal income. The SLC probably thought you were self-employed using a sole trader set-up - in which case your sole trader P&L would be brought into the calc.

[Nathan SJD Accountancy]

Also a question for Nathan, is this something that SJD should be able to advise a client on or is it out of their expertise?

Hi David,

I wouldn't necessarilly say you needed expertise on the matter. But more just an awareness or experience in how the Student Loan Deductions are calculated via self assessment tax returns.

[davidc123]

Hi David,

I wouldn't necessarilly say you needed expertise on the matter. But more just an awareness or experience in how the Student Loan Deductions are calculated via self assessment tax returns.

Yeah I don't really need the expertise now, i only ask because my sjd accountant gave me zero help or advice with this at the time, apart from telling me to phone slc. I was just wondering whether you would expect anything more from them.

[Nathan SJD Accountancy]

Yeah I don't really need the expertise now, i only ask because my sjd accountant gave me zero help or advice with this at the time, apart from telling me to phone slc. I was just wondering whether you would expect anything more from them.

Morning David,

If you PM me your accountants name. I'll give them a call.

Cheers.