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Where Taxpayers and Advisers Meet

Student loan repayment when using self assessment

poloman
Posts:1
Joined:Wed Aug 17, 2016 4:55 pm
Student loan repayment when using self assessment

Postby poloman » Wed Aug 17, 2016 5:07 pm

Help please

Gained a degree recently and obtained loans through student loan company the rules on repayments state plan 1 you have to earn more than £17495 per year before repayments start.
I receive an occupational pension and as not subject to national insurance contributions do not include loan repayments.
This year i found a job which required me to become self employed i earned 4000 in the last tax year and completed a self assessment form
Im now told by using a self assessment i must pay student loan back at 9% over earning of 17400 including my pension.
If i worked for an employer and paid through paye i would not have to pay student loan back unless over the 17495 limit including my pension income as well.
It appears unfair you can earn as little as 4000 year extra yet subject to your protected pension exposed to the full amount. Is this correct?

pawncob
Posts:5099
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Student loan repayment when using self assessment

Postby pawncob » Fri Aug 19, 2016 11:31 am

It was your choice to become self employed, and these are the consequences. Your repayments depend upon your total income (including pensions, dividends etc)
http://www.studentloanrepayment.co.uk/p ... 1617_D.PDF
With a pinch of salt take what I say, but don't exceed your RDA


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