Should student loan repayments be taxed?

Robbie_Duck

Just after a bit of advice,

I have 4 student loans, starting in 97 to 2000. I started repaying these in 2008.

As it stands, I am paying these back via direct debit from my bank account. Following discussions with a friend in the pub the other day, he was saying that his loan is paid off straight from his wages and before tax.

My question is: Is he correct, can really I make my loan contributions prior to tax?

If so, is it just a case of giving the student loan company a ring or does this need to be raised with my employer as well?

Also, I don’t suppose there is a way of reclaiming my tax paid for the previous two years is there?

Maybe all this is wishful thinking….

Thanks in advance for any advice

Equaliser123

homemodifications wrote: »

No, student loan repayment should not be taxed.

That wasn't the question!

Student loan payments are deducted from salary after tax.

Robbie_Duck

Thank you very much Equaliser.

So my friend was wrong. Thats what comes of listening to people in pubs.

Thanks for your reply too homemods. I didnt word the question too well so apologies for any confusion!

Pont

Equaliser123 wrote: »

That wasn't the question!

Student loan payments are deducted from salary after tax.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867311&_dad=portal&_schema=PORTAL

Student loan repayments are calculated on gross salary (pre tax)

Equaliser123

Pont wrote: »

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867311&_dad=portal&_schema=PORTAL

Student loan repayments are calculated on gross salary (pre tax)

Not disagreeing. But they are paid AFTER tax.

Oldernotwiser

Your friend had a newer loan than you did - you're on the pre 1998 mortgage style. His are taken direct from his salary but you both pay them out of taxed income.

amiehall

I can confirm that my income is assessed gross to calculate what payments should be. Tax is then deducted and then the loan payments are taken from net earnings. Seems a bit mean but that's the way it is....