More than one job and repayment

WH87

Hi,

As a former student with a post-1998 loan with a salary of £18,000, I am repaying £22/month.

I have recently taken up second employment which is paying aprox £500/month.

I called the Student Loans Company about my second job and paying contributions on this income.

They told me that because the job does not bring in more than £1250 in any month I would not have to make payments based on that income even though I am earning above £15,000 on my first job anyway.

To me, this does not sound right as I was expecting to pay on the second income. Ideally, i would rather legally pay as little as possible as I am saving for a house deposit.

Any advice would be much appreciated.

Poolie

Your incomes are treated separately by each employers so SLC are correct in saying repayment is expected from 1st income as over £15K but not 2nd as your nor over threshold. HMRC may see the difference and wonder why when they reconcile the tax records at a later date. If you wanted to pay more you could by standing order, however you are not legally libable for anything on the 2nd income. Your 2nd income will be taxed at basic rate income tax as your tax free allowance will be used on your 1st job.

bell123321

That sounds about right to me. I used to be on a 24k job and paid approx £100-£110 a month. However I did often do some overtime.

whitfreak

I believe it all comes down to whether you have to fill in a tax return. If you fill in a tax return then you will end up having to make repayments on the second job. If you don't then alls fine. It is an oddity in the system.

I would not make extra payments as these do not offset legally required payments. I'd set aside £45 a month if i could just incase I had to fill out a tax return.