Deducting graduate endowment from taxable income?

MW1_2

Hi,

As a Scottish student the time has come for me to pay my £2,000 graduate endowment 'in recognition of the benefits of a degree'....as I have chosen to pay this in a lump sum and not take a student loan (which would be collected by my employer at 9% of earnings over £15k) my query is as follows;

1. Can I deduct the £2k from my taxable earnings (i.e. increase my tax free earnings for the year by £2k as it is an education cost??)

And in the same vein,

2. Are the employer deductions collected, if I had opted to take a student loan and repay as a percentage of earnings, before or after tax with your monthly salary?

Any help appreciated.

Michael.

reddevilled

MW1 wrote:

Hi,

As a Scottish student the time has come for me to pay my £2,000 graduate endowment 'in recognition of the benefits of a degree'....as I have chosen to pay this in a lump sum and not take a student loan (which would be collected by my employer at 9% of earnings over £15k) my query is as follows;

1. Can I deduct the £2k from my taxable earnings (i.e. increase my tax free earnings for the year by £2k as it is an education cost??)

And in the same vein,

2. Are the employer deductions collected, if I had opted to take a student loan and repay as a percentage of earnings, before or after tax with your monthly salary?

Any help appreciated.

Michael.

Not sure I fully understand your circumstances, but if it helps your student loan deductions (at 9% over 15k) are taken from your gross salary and there is no tax relief on the deductions.

HTH