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  • FIRST POST
    • mottyt
    • By mottyt 12th Jun 17, 10:19 PM
    • 33Posts
    • 5Thanks
    mottyt
    Deductions due to back pay
    • #1
    • 12th Jun 17, 10:19 PM
    Deductions due to back pay 12th Jun 17 at 10:19 PM
    Hi,

    Can anyone accurately advise whether spreading back pay and/or a bonus payment over several months would reduce the impact of student loan and NI deductions, or is the effect the same as taking a one month hit?

    E.g. i earn 34k but receive a back dated pay award in June to 37.5k plus a bonus payment of 4k. This pushes monthly gross up from around 2800 to nigh on 8k payment in June.

    Will i pay more in June for student loan and NI than if i spread the extra income over e.g. the remainder of the year, or would the deductions net to the same amount by end of year?

    I know tax will sort itself, being cumulative, just not sure about the rest.
    Last edited by mottyt; 12-06-2017 at 10:20 PM. Reason: Typo
Page 1
    • sourcrates
    • By sourcrates 13th Jun 17, 2:10 PM
    • 11,973 Posts
    • 11,463 Thanks
    sourcrates
    • #2
    • 13th Jun 17, 2:10 PM
    • #2
    • 13th Jun 17, 2:10 PM
    Any ideas for the OP anyone ????
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    • Gladioli
    • By Gladioli 13th Jun 17, 2:15 PM
    • 38 Posts
    • 98 Thanks
    Gladioli
    • #3
    • 13th Jun 17, 2:15 PM
    • #3
    • 13th Jun 17, 2:15 PM
    When did you take your loan out? as it may have an impact
    • redpete
    • By redpete 13th Jun 17, 3:02 PM
    • 4,117 Posts
    • 3,633 Thanks
    redpete
    • #4
    • 13th Jun 17, 3:02 PM
    • #4
    • 13th Jun 17, 3:02 PM
    Up to 3750 you will pay 12% NI, above this it is 2%. You will pay less NI if you rake the single lump sum.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • mottyt
    • By mottyt 13th Jun 17, 7:01 PM
    • 33 Posts
    • 5 Thanks
    mottyt
    • #5
    • 13th Jun 17, 7:01 PM
    • #5
    • 13th Jun 17, 7:01 PM
    Student loan is scheme 1 (taken circa 2005)
    • mottyt
    • By mottyt 13th Jun 17, 7:02 PM
    • 33 Posts
    • 5 Thanks
    mottyt
    • #6
    • 13th Jun 17, 7:02 PM
    • #6
    • 13th Jun 17, 7:02 PM
    Up to 3750 you will pay 12% NI, above this it is 2%. You will pay less NI if you rake the single lump sum.
    Originally posted by redpete
    Ok, and if ive understood you correctly its because otherwise ill be paying the 12% on the 3750 for every time i split the amount?

    Any ideas on student loan?
    • Whoknowskt89
    • By Whoknowskt89 13th Jun 17, 8:01 PM
    • 262 Posts
    • 622 Thanks
    Whoknowskt89
    • #7
    • 13th Jun 17, 8:01 PM
    • #7
    • 13th Jun 17, 8:01 PM
    If you're on plan 1 it's 9% over £17,775 earnings whether it's 5k over or 20k
    August 2017 £9510/£11,150 savings aim for EF and moving (by Jan 2018)
    Mortgage £67 483 Emergency fund £1500 Moving fund £8010 Treats account £648 Doing up flat £1050
    Christmas 2017 £120/£160
    • Whoknowskt89
    • By Whoknowskt89 14th Jun 17, 12:33 PM
    • 262 Posts
    • 622 Thanks
    Whoknowskt89
    • #8
    • 14th Jun 17, 12:33 PM
    • #8
    • 14th Jun 17, 12:33 PM
    By the way if you Google the salary calculator their site is fairly accurate on payments and the non mobile version has a bonus calculator.

    The below link has all the information on how they calculate student loan repayments

    http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678490&_dad=portal&_schema=PORTAL
    August 2017 £9510/£11,150 savings aim for EF and moving (by Jan 2018)
    Mortgage £67 483 Emergency fund £1500 Moving fund £8010 Treats account £648 Doing up flat £1050
    Christmas 2017 £120/£160
    • redpete
    • By redpete 15th Jun 17, 12:13 AM
    • 4,117 Posts
    • 3,633 Thanks
    redpete
    • #9
    • 15th Jun 17, 12:13 AM
    • #9
    • 15th Jun 17, 12:13 AM
    Ok, and if ive understood you correctly its because otherwise ill be paying the 12% on the 3750 for every time i split the amount?
    Originally posted by mottyt
    You have understood it correctly.
    loose does not rhyme with choose but lose does and is the word you meant to write.
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