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Student Loan liability & pension lump sum
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hatnezmaturestudent
Posts: 40 Forumite
Dear all,
As my profile name suggests, I am a part time mature student with SFE loan. I start repayments in April 2019 at which time I am also eligible to retire with pension lump sum. The lump sum takes me over the income threshold (21K) for that year 2019/20. My question is;
Does the lump sum count as annual income which I would have to pay 9% of anything over 21K as repayment?
Many thanks:j
As my profile name suggests, I am a part time mature student with SFE loan. I start repayments in April 2019 at which time I am also eligible to retire with pension lump sum. The lump sum takes me over the income threshold (21K) for that year 2019/20. My question is;
Does the lump sum count as annual income which I would have to pay 9% of anything over 21K as repayment?
Many thanks:j
0
Comments
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If the lump sum is your tax free lump sum then it doesn't count towards annual income.You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.0
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hatnezmaturestudent wrote: »Dear all,
As my profile name suggests, I am a part time mature student with SFE loan. I start repayments in April 2019 at which time I am also eligible to retire with pension lump sum. The lump sum takes me over the income threshold (21K) for that year 2019/20. My question is;
Does the lump sum count as annual income which I would have to pay 9% of anything over 21K as repayment?
Many thanks:jIf the lump sum is your tax free lump sum then it doesn't count towards annual income.
Pension income is excluded for the purposes of student loan repayments as it is not subject to National Insurance. Only NICable income counts for student loan repayments.0 -
Thank you. Much appreciated.0
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