Self-employed & student - HMRC/loan advice needed

SomethingGood

I'm currently registered as self-employed with HMRC, and the Student Loans Company are aware of this too (I have about £3,000 left to pay from my undergrad). My earnings are low - working out at the equivalent of full-time minimum wage (although I actually only work 20hrs per week).

In September I'll be starting a full-time self-funded masters degree. In order to afford to live I'll need to continue with my freelancing. What are the tax implications? Will I be entitled to a tax rebate if I earn over the personal allowance threshold? Will I be seen as a student or still as a freelancer? Do I need to tell the Student Loans Company even though I'm not earning enough to pay that back anyway?

Any advice would be very welcome! I only registered as self-employed six months ago so it's all a bit new to me.

agrinnall

There are no tax implications, being a student confers no special tax advantages. Your tax situation will be exactly as it is now (I don't know about telling SLC but I can't see why there would be any need to). The only thing that might be to your advantage is if you received a bursary to study, which I think would be tax free.

penguingirl

Also don't forget you will be entitled to council tax discount if you are full time (100% if you live alone, 25% if you live with 1 non-student adult, 0% if you live with 2+ non-student adults)

agrinnall

penguingirl wrote: »

Also don't forget you will be entitled to council tax discount if you are full time (100% if you live alone, 25% if you live with 1 non-student adult, 0% if you live with 2+ non-student adults)

Although this might not be true if the course is part time study.

amiehall

There is no need to inform anyone. Your tax and loan repayment issues will be handled correctly when you complete your self assessment as per usual. Your student status has no effect.

SomethingGood

Thanks very much everyone. Re the tax rebate I must've been thinking about the jobs I had before I even went to uni! Good to know I can continue doing what I'm doing, cheers.