Salary sacrifice for career development loan

Manchuri

Does anyone know if it is possible to repay a career development loan (CDL) through salary sacrifice? I think other student loans are taken out of gross pay, so could a CDL be considered in the same category? I was hoping to find the most efficient way of repaying the loan and somehow getting repayments out of gross pay was the best I could come up with.

Thanks in advance for any advice/input you can offer.

boobies

No, it is not. It is a commercial loan, it is not the same as the student loan.

Manchuri

boobies wrote: »

No, it is not. It is a commercial loan, it is not the same as the student loan.

Thanks for the reply. I realise it is a commercial loan; I was wondering if there were provisions in HMRC for this to be an employment benefit; I think companies can offer season travel tickets etc on salary sacrifice so was hoping training that specifically benefits my employer could be similarly classified.

Tixy

The most efficent way to pay is likely be to overpay more than your scheduled repayment - thereby decreasing the amount of interest you pay overall.
(Obviously check the terms regarding overpayments and if they charge a % fee for overpayments)

If your firm did agree to repay it on your behalf it would still come out of taxable pay / would be a benefit in kind. Plus you'd have the potential uncertainty of whether they were always paying on time or could potentially be paying late and messing up your credit file.

Manchuri

Tixy wrote: »

The most efficent way to pay is likely be to overpay more than your scheduled repayment - thereby decreasing the amount of interest you pay overall.
(Obviously check the terms regarding overpayments and if they charge a % fee for overpayments)

If your firm did agree to repay it on your behalf it would still come out of taxable pay / would be a benefit in kind. Plus you'd have the potential uncertainty of whether they were always paying on time or could potentially be paying late and messing up your credit file.

Thanks for the reply, I was going to overpay (loan term 3 years, I want to repay in 1), the allure of an extra 40% contribution from PAYE was what got me thinking along these lines My logic is that companies pay for training, which (I think) is a non-taxable benefit, so as the course has benefit to the business, a salary sacrifice could be set up and treated as a non-taxable benefit.