Student Loan financial planning
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nomorekids
Posts: 417 Forumite
in Loans
I wonder if anyone knows the answer to this as I am trying to work out how much lump sum personal pension to make before the end of the tax year. I have savings to direct towards this or reduce the mortgage on a buytolet I also have. The reason for the calculation quandary is I have son going to uni next year so its this tax year that will count towards how much maintenance loan he will be offered.
Questions:
1, Do you take off the gross amount of pension contributions say £3600 when you’ve only actually paid £2880 or the £2880 amount you actually paid into your pension.
2, Rental income, what counts? The actual rent received? Or the rent minus expenses? In which case can you take off all of the mortgage payments or just (for this year) 75%? plus agents, insurance, boiler certs etc
If anyone knows how they calculate income for student loans, I would be really grateful for the advice.
Questions:
1, Do you take off the gross amount of pension contributions say £3600 when you’ve only actually paid £2880 or the £2880 amount you actually paid into your pension.
2, Rental income, what counts? The actual rent received? Or the rent minus expenses? In which case can you take off all of the mortgage payments or just (for this year) 75%? plus agents, insurance, boiler certs etc
If anyone knows how they calculate income for student loans, I would be really grateful for the advice.
If you want to be rich, never, ever have kids 
0
Comments
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Rental income, what counts? The actual rent received? Or the rent minus expenses? In which case can you take off all of the mortgage payments or just (for this year) 75%? plus agents, insurance, boiler certs etc
You have NEVER been able to take off all the mortgage payments as an expense on a BTL, only the interest but even that has changed over the last 2 years with changes to the tax rules. I'm assuming you're a higher rate tax payer in which case you can't even offset your mortgage interest either against your income, just the 75% this year as you say. So even if you make a capital repayment of the BTL mortgage this will not alter your income as it cannot legally count as an expense.
However to answer your question it would be rental profit so rental income minus 75% of mortgage interest payments plus agent fees, repairs etc.
Gross taxable income. Your pension payments won't help because they are taken from net income and then you receive a tax relief into the pension fund.If anyone knows how they calculate income for student loans, I would be really grateful for the advice.
Student maintenance loans are there to help those from poor backgrounds to be able to go to university. Instead of trying to game the system like a benefits cheat why not use some of that rental income to support him like the system is supposed to work?0 -
Thank you for your answers but not for judging me, I am using the rental profit to fund my son through university, its my only income so that is all I have anyway so I don't really understand your comment regarding, student loans being for poor people? I thought they were for everybody?
Are you saying that the £2880 pension contribution I make each year cannot be deducted? I thought gross taxable income was income minus pension contributions so I would be grateful for clarification.If you want to be rich, never, ever have kids0
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