Student loan deducted in second job?

Timmne

Good afternoon,

I'm about to employ my wife to do some administrative work for me to relieve some of the pressure from my workload but have a question regarding her student loan...

She's currently paying her student loan off through her employment and I was wondering whether as her (second) employer, would I need to deduct this too or is it like NI where you have an allowance in each job?

I'm guessing so but thought I'd see if any accountants here could lend some advice please?

Thanks

suso

From what I can remember, you only deduct SL if the job is paying 15000 or over, (not the total income of all jobs) so in theory if you have 2 jobs both paying 14999.00 (a total of 29998.00) no payments would be deducted

another scenario would be, If one job was paying 20,000 and the other 10,000 then there would only be deductions from the job paying 20,000

but the rules might have changed since the last time I had anything to do with the SLC.

BoGoF

The attached may be useful

http://www.hmrc.gov.uk/helpsheets/e17.pdf

It does say if the employee has 2 jobs then to ignore the earnings from the other employment so I would take it from this that unless your wife is earning over the £15000 exemption with you then no deductions would be made by you

Timmne

Thanks both - my alerts were going to spam so I didn't think I had any replies!

:beer:

dori2o

Just to complicate things a little, does your wife complete Self Assessment forms?

If not then what you propose would be OK, however, if she does fill in the forms then she will get a bill for the missing SL deductions this way.

Although the SL deductions are done on the basis of a 9% deduction on everything over £288 per week, if she was to fill in a tax return, and had a total income in excess of £15k, then the self assessment would charge the student loan, no matter if each employment your wife had an income of £14k each and therefore not independantly due to charge SL deductions.

Many people get caught out like this, and it takes one hell of a lot of explaining to mostly irate people on the phone.

Timmne

Thankyou x 100!

Yes she does do SA- pretty much makes it pointless me paying her for the work then as it seems to be a decision between me paying 8% NI or her paying 9% student loan... Just means her loan goes quicker I suppose!

Hmmm!