student loan payments after a bonus payment

tombocollbo

hello I started a job in September after graduating and my basic salary is only £15000 so i have never made student loan repayments. In my june payment from work there will be my bonus for the whole year Of £6000+ . Will the student loan people think i get that every month and take a massive chunk of it or will they realise it is a one off and just take the proportionate amount. Basically Would I be better off asking my work to spread this payment out over the next few months so I pay the correct amount to the student loan people. I would really like to get all the bonus in one go though.

Lokolo

They will take it out if your HR system is PAYE, usually is.

You can always request a refund. It is also not student loan people that take it. HMRC take it and pass it on to student loan, so you likely won't be able to get a refund until after the tax year.

Work can't just spread it out. It's done through automatic systems.

amiehall

So your earnings for the year are £15k plus £6k bonus so over £21k in total?

The student loan repayment is calculated on each pay period seperately so you will make a large loan repayment from your bonus.

If my assumptions about your earnings are correct, then sadly you will not be entitled to reclaim this later. As your total earnings are over the threshold for this year, no refunds are given even if the amount you have paid is too much for equivalent earnings spread over the whole year. Basically, you always make excessive repayments on a large bonus if your earnings are low, and if your work are willing to spread it out, you will be better off.

agrinnall

Lokolo wrote: »

Work can't just spread it out. It's done through automatic systems.

Unless you work at the same place as the OP you can't possibly know whether the bonus can be spread over several months.

OP, I would definitely ask if this is possible, the worst that can happen is that they say no.

tombocollbo

thanks for the replys. I spoke to my work and they are ok to spread it out over 6 months so student loan people wont take to much