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    • jsj25
    • By jsj25 12th Oct 17, 11:05 PM
    • 8Posts
    • 0Thanks
    jsj25
    Self Assessment/Student Loan Repayments
    • #1
    • 12th Oct 17, 11:05 PM
    Self Assessment/Student Loan Repayments 12th Oct 17 at 11:05 PM
    Hi everyone,

    Just looking to get some advice from you all. In my current job I earn a salary of £18,330 per year, with occasional bonuses and small amounts of commission on top. This past summer I decided to take on some transcription work for an online company to supplement my income, which I'm still doing. The amount I earn varies from month to month, but it's a fairly small amount and I don't think the earnings will exceed £1,000 in any given tax year.

    Part of the deal when signing up with this company is that I had to register as a sole trader. I've done this, have received a UTR, and appreciate that I will have to fill out a self-assessment for this income. As I use up my personal tax allowance in my main job, each month I put 20% of my self-employed earnings aside for tax. However, a change of circumstances has got me wondering about student loan repayments.

    I'm signed up for Plan 2 SL repayments. Because my £18.3k salary is under the repayment threshold, I don't have anything deducted on my payslip, and because my self-employed earnings won't take me over £21k, I haven't been putting anything aside from these either.

    However, next month will be starting a new job on a salary of £22,000, which obviously means there'll be Plan 2 deductions on my payslip each month. I also plan to put aside 9% of my self-employment earnings from now on. My question is, when I file my self-assessment next year, will HMRC tell me I have to pay 9% on ALL self-employment earnings in this tax year? Or is there any way for me to mark my earnings from August-October (where I was earning £18.3k) as exempt from this 9%?

    Sorry for the long post, guys. It's my first time doing anything like this so any insight you can offer would be massively appreciated!
Page 1
    • 00ec25
    • By 00ec25 13th Oct 17, 12:08 AM
    • 5,554 Posts
    • 4,933 Thanks
    00ec25
    • #2
    • 13th Oct 17, 12:08 AM
    • #2
    • 13th Oct 17, 12:08 AM
    have you tried google to research for answers?
    https://www.gov.uk/repaying-your-student-loan/what-you-pay
    "If you have more than one job in a year, your interest rate will be based on your combined income from all your jobs."

    there are other sources as well:

    https://www.taxguideforstudents.org.uk/student-loans/plan-2-student-loans/i-have-to-fill-in-a-tax-return.-how-do-self-assessment-plan-2-student-loan

    https://www.crunch.co.uk/knowledge/personal-finance/pay-back-student-loan-im-self-employed/

    http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678726&_dad=portal&_schema=PORTAL
    • dori2o
    • By dori2o 15th Oct 17, 9:01 PM
    • 7,364 Posts
    • 12,276 Thanks
    dori2o
    • #3
    • 15th Oct 17, 9:01 PM
    • #3
    • 15th Oct 17, 9:01 PM
    Simple answer is, the tax return will calculate the SL due on all of your income over the year less the £21k limit. It then multiplies the remaining amount by 9% to calculate the SL deduction due.

    It will not take into account the fact you were earning below the limit from April to October.
    To equate judgement and wisdom with occupation is at best . . . insulting.
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