Self Assessment & Student Loans - Not adding up

MercilessKiller

Hi There

I have a quick question for those that use self-assessment and repaying student loans.

Circumstance is this is for someone who has full employment, but also receives money through a divident from a ltd company they own (extra work on the side).

Student loan was correctly paid throughout the employment and on the P60. Filled in within SA. The dividend is then declared on the SA so further tax is due on that dividend.

However, the confusing this I've found is the extra tax due to figure appears at £100, but there is also a Student Loan Repayment Due figure that appears on the SA form (the one created online( of £250.

the odd thing is, the final calculation summary says only the £100 tax is owed and not the £250 - even though Student Loan should be collected via the tax return.

Totally confused here - The same thing happened last year (different figures) but no bill or request for the student loan repayment due box ever came through... Any ideas? Is it because there was already a load of student loans paid through the P60 which has covered it potentially?

Thanks!

Ed-1

MercilessKiller wrote: »

Hi There

I have a quick question for those that use self-assessment and repaying student loans.

Circumstance is this is for someone who has full employment, but also receives money through a divident from a ltd company they own (extra work on the side).

Student loan was correctly paid throughout the employment and on the P60. Filled in within SA. The dividend is then declared on the SA so further tax is due on that dividend.

However, the confusing this I've found is the extra tax due to figure appears at £100, but there is also a Student Loan Repayment Due figure that appears on the SA form (the one created online( of £250.

the odd thing is, the final calculation summary says only the £100 tax is owed and not the £250 - even though Student Loan should be collected via the tax return.

Totally confused here - The same thing happened last year (different figures) but no bill or request for the student loan repayment due box ever came through... Any ideas? Is it because there was already a load of student loans paid through the P60 which has covered it potentially?

Thanks!

What is the breakdown of earnings from PAYE and earnings from self-employment? Savings interest and dividends are only counted for student loan repayment if they are over £2,000.

MercilessKiller

The dividend was £3k but Student Loan Repayment due was somewhere around £250 so that sounds high based on what you said - however, I'm disregarding PayE because student loan was correctly paid throughout the employment.

Though why do your questions matter? The confusing thing to me is there is a figure on the SA form that says Student Loan Repayment Due, but that figure is then not appearing in the calculation summary of what I owe - Does that mean thta the repayment due figure is calculated before taking into an account other variables (such as what's been paid as part of PayE or dividend allowance etc etc)?

Ed-1

MercilessKiller wrote: »

The dividend was £3k but Student Loan Repayment due was somewhere around £250 so that sounds high based on what you said - however, I'm disregarding PayE because student loan was correctly paid throughout the employment.

Though why do your questions matter? The confusing thing to me is there is a figure on the SA form that says Student Loan Repayment Due, but that figure is then not appearing in the calculation summary of what I owe - Does that mean thta the repayment due figure is calculated before taking into an account other variables (such as what's been paid as part of PayE or dividend allowance etc etc)?

For people who have to submit a tax return, the student loan repayment amount is calculated as 9% on all NICable income above the relevant repayment threshold.

Any repayments already made through PAYE in that tax year are taken off this amount.

http://www.legislation.gov.uk/uksi/2009/470/regulation/29/made

(These regulations have been subsequently amended so for "£15,000" read "the repayment threshold")

MercilessKiller

"Any repayments already made through PAYE in that tax year are taken off this amount."

Interesting...

So the Student Loan Repayment Due figure could be the money owed BEFORE taking into the account repayments already made? That is very misleading in the title of that box, especially with it being on the last page of the SA.

That's good though - it means no unexpected bill (with interest) at a later date. Appreciate that!