Student Loan automatically took Xmas bonus

AuntyToria

Hi There - I'm new to this so i'm sorry if it's in the wrong place.

I just wanted to ask some advice - I've been paid an £800 xmas bonus with my normal pay, which has gone down to £500 because the student loan company automatically took a chunk of it.

I'm wondering if this is actually allowed as its not part of my normal earnings - it seems a bit unfair to take a bonus i've worked hard all year for when I pay them £150 a month as it is?

Can anyone give me some advice?

Thanks!!

Kavanne

They took £300 out o f £800!? That is awful and surely a mistake. My take home pay is about £1100 pm and I only pay £16 to student loans...

tinkerbell84

AuntyToria wrote: »

Hi There - I'm new to this so i'm sorry if it's in the wrong place.

I just wanted to ask some advice - I've been paid an £800 xmas bonus with my normal pay, which has gone down to £500 because the student loan company automatically took a chunk of it.

I'm wondering if this is actually allowed as its not part of my normal earnings - it seems a bit unfair to take a bonus i've worked hard all year for when I pay them £150 a month as it is?

Can anyone give me some advice?

Thanks!!

i thought it was a percentage of everything you earn.

just like tax.

i doubt you have any claim to getting the money back. a bonus paid by your work is still income and therefore subject to student loan deductions.

CLAPTON

are you sure you have told us the full facts?

a bonus is just salary... no more no less

Kavanne

Was it 800 - tax - NI - student loan = 500?

chambta

As you pay back on what you earn above £15000 the higher the 'one off' wage packet the higher % they take. This is the way it works. Same happened with mine until repaid.

Credit-Crunched

As chambta correctly said you pay 8% above 1250 gross pay every month. Your bonus would ahve tipped you over this sadly, seems unfair but they can not differentiate between bonus / over time etc, so if your gross pays goes above you pay.

Wappers

20% Basic Income Tax
11% NI
8% Student loan
gives a nice 39% deduction at the 'top end' of your income.
so 0.61*£800=£488

this is roughly: 800 - tax - NI - student loan = 500

CLAPTON

Credit-Crunched wrote: »

As chambta correctly said you pay 8% above 1250 gross pay every month. Your bonus would ahve tipped you over this sadly, seems unfair but they can not differentiate between bonus / over time etc, so if your gross pays goes above you pay.

suppose there are two people doing identical jobs

one person's employer pays him 15,000 in basic salary and 10,000 in bonus

the other one's employer pays him 25,000 in salary with no bonus

would it really be fair in one paid less tax/NI/student loan than the other?

Credit-Crunched

Wappers wrote: »

20% Basic Income Tax
11% NI
8% Student loan
gives a nice 39% deduction at the 'top end' of your income.
so 0.61*£800=£488

this is roughly: 800 - tax - NI - student loan = 500

try 40% tax lol!

Credit-Crunched

CLAPTON wrote: »

suppose there are two people doing identical jobs

one person's employer pays him 15,000 in basic salary and 10,000 in bonus

the other one's employer pays him 25,000 in salary with no bonus

would it really be fair in one paid less tax/NI/student loan than the other?

Of course not, same earnings should be same deductions, jsut seems a bit harsh on a one off christams bonus. Rules are rules eh!