Student loans + tax rebate?

leon103

I have been told by someone who is filling in their self assesment tax from that there is a section on the form that allows you to reclaim tax paid on student loans. Is this correct?

I am not self employed and where my pension is not taxable my student loan payment is.

Mikeyorks

leon103 wrote: »

Is this correct?

Yes - but fairly obviously, only if you've overpaid. Which is unlikely if you're solely PAYE :-

http://www.hmrc.gov.uk/students/overpay_student_loan_6_2.htm

CLAPTON

what do you mean your student loan payment is taxable?

student loans (post 1998) are repaid at a rate of 9% on everything over 1250 per month
the loans are not taxed and neither is the repayment

leon103

My taxable pay includes my student loan payment

fengirl_2

Your taxable pay includes the student loan repayment which you are laible to pay as Clapton has set out. There is no tax relief for these payments. The SL payments are entirely separate form your tax liability which is worked out on your gross pay.
Does this answer your question?

CLAPTON

by way of example

if you earn 1,500 gross per month then your student loan deduction will be

9% of (1,500 - 1,250) or 9% of 250 = £22.5

leon103

Sorry I must be getting confused.

Last month I earned 2432.45. My pension was 212.06. My taxable pay is 2219.39. I paid 106 on student loan repayments.
So the 2219.29 i paid tax on includes my student loan payment

fengirl_2

Yes, that's right. As previously stated, you dont get tax relief on your SL.

Mikeyorks

Yes - if you want to look at it that way. Just as your NI is also calculated on your gross.

It's not like car insurance where varied discounts are taken off sequentially. It all (with the exception of the allowance on your pension contribution) has a basic calculation from the gross. So your Student Loan is (£2432 - £1250 = £1182 x 9% = £106)