How do changes to quarterly self employment tax rtrns effect student loan repayments?

KG

Does anyone know how new quarterly tax submission requirements for self employed people will affect student loan payments?

I work part time and I also freelance part time. My freelancing comes in fits and starts. For example, a current 4 month project is worth about £5k, but this will be the main chunk of my freelance work this year.

I am a little worried that, if I enter a quarterly return that shows the income from my part time job (c. £11.5k /year and I pay tax via PAYE) and a £5k lump sum for freelancing, a wildly incorrect assumption will be made that I will earn around £15-20k freelancing (it's more like £7k)

2017/18 will be the first year where I may have to repay some of my student loan - I am in Scotland and have been told the threshold for repayment is around £17k. I understand that I currently just pay anything I owe at the end of the financial year, based on my tax return.

It has only just occurred to me that this change might cause a major pain when it comes to Student Loan repayments, and I wondered if anyone knows anything about this?

Thanks

K

agrinnall

I think you might be better posting this on the Cutting Tax board where there is a lot of discussion of the upcoming changes. I don't recall this particular issue being mentioned so you might kick off some spirited debate!

KG

agrinnall wrote: »

I think you might be better posting this on the Cutting Tax board where there is a lot of discussion of the upcoming changes. I don't recall this particular issue being mentioned so you might kick off some spirited debate!

Great - thanks! I wasn't sure which was the best board for this.

KG

Have another thread with a good answer here https://forums.moneysavingexpert.com/discussion/comment/72488587#Comment_72488587