Repayment of Student Loans

Dancysaltydog

Hi sorry if this is the wrong section but it seemed like the best place to put it.
I recently received a letter from student finance requesting my current employment information in order to see if I need to repay my student loans. However since finishing Uni I have been unemployed and supporting myself through online gambling. What would be the policy re: having to pay back my student loans? Would I beat right in assuming that, as gambling winnings aren't taxed, I wouldn't be expected to start paying it back now?

Thanks for anyone who can help.

Ed-1

Dancysaltydog wrote: »

Hi sorry if this is the wrong section but it seemed like the best place to put it.
I recently received a letter from student finance requesting my current employment information in order to see if I need to repay my student loans. However since finishing Uni I have been unemployed and supporting myself through online gambling. What would be the policy re: having to pay back my student loans? Would I beat right in assuming that, as gambling winnings aren't taxed, I wouldn't be expected to start paying it back now?

Thanks for anyone who can help.

Assuming you took it out for a course that started before 2012, see this page: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL

You don't need to start repaying a loan for a course that started before 2012 before you earn £16910 in a tax year (this threshold changes every April with inflation so from next April will be £17335). If you took out a loan for a course starting in 2012 or later, the threshold is £21000.

So no, you'll just need to send them the confirmation of customer details form back (ticking the 'I am unemployed' box) with proof of how you are supporting yourself (e.g. bank statements showing savings or a signed letter from someone who is supporting you).

agrinnall

Ed-1 wrote: »

Assuming you took it out for a course that started before 2012, see this page: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678571&_dad=portal&_schema=PORTAL

You don't need to start repaying a loan for a course that started before 2012 before you earn £16910 in a tax year (this threshold changes every April with inflation so from next April will be £17335). If you took out a loan for a course starting in 2012 or later, the threshold is £21000.

So no, you'll just need to send them the confirmation of customer details form back (ticking the 'I am unemployed' box) with proof of how you are supporting yourself (e.g. bank statements showing savings) or a signed letter from someone who is supporting you.

All commendable, and I'm sure it's accurate, but it doesn't really address the OP's question: are winnings from gambling counted as income from which student loan repayments are due? I don't know the answer, but your post says nothing about this particular situation so is of little help.

Ed-1

agrinnall wrote: »

All commendable, and I'm sure it's accurate, but it doesn't really address the OP's question: are winnings from gambling counted as income from which student loan repayments are due? I don't know the answer, but your post says nothing about this particular situation so is of little help.

You are quite right. I completely skimmed over the gambling aspect of the OP's question. Income from gambling is a pretty grey area with regards to whether it is taxable or not (i.e. liable for income tax). If you are a punter then it shouldn't be but if you are a bookmaker it is. If you bet online you are effectively acting as a bookmaker so it could be classed as a taxable income source by HMRC in which case it would also be liable for student loan deductions.

Alternatively, gambling income may count as 'unearned' income and any unearned income over £2000 counts towards the student loan repayment threshold income. i.e. if you have no earned income as you are unemployed and, say, earn £20000 in unearned income you would be required to repay 9% of £3090 (£20000 - £16910) = £278 towards your student loan.

Ring SLC and get them to confirm whether you need to be making repayments on this income (if it is over the threshold of course).

atypical

Only taxable income is subject to student loan repayments. It's extremely unlikely your gambling winnings would be considered taxable. More info here: http://www.hmrc.gov.uk/manuals/bimmanual/BIM22017.htm

I'm very sure it wouldn't be classed as unearned income either so you shouldn't need to make any repayments.