Threshold for repaying pre-1998 loans and self employment 27 October 2018 at 9:35PM in Student MoneySaving 2 replies 1.1K views

Rosskie

Hi folks,

Hoping someone can give me an answer here - I've been trying to find out how gross income is regarded in respect to self employment. I've currently deferred my pre-1998 loans, but will be going self employed shortly, driving a black cab. My turnover will be above the threshold for repayments (around £39k), but I need to rent a cab, and obviously pay fuel etc. These costs will push me below the threshold (around £26k). I dont expect to be taxed on £39k, but will on the £26k.

Does anyone know which figure they will use when it comes to deferment? They ask for a gross figure before tax, and if this means £39k, the subsequently triggered loan repayments would probably prohibit me from going self employed.

For various reasons, I'm reluctant to ask the loan management company at this stage, so I'm hoping I can get an idea of how it works here?

Thanks for reading.

molerat

Your gross taxable income and figure used for SL is your profit not your turnover.

Rosskie

Brilliant, thank you