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[Deleted User]
[Deleted User] Posts: 0 Newbie
Third Anniversary 10 Posts
edited 29 January 2022 at 1:44PM in Student MoneySaving
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  • Ed-1
    Ed-1 Posts: 3,955 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 11 July 2020 at 1:33PM
    If you own a company, do you pay student loan repayments based on your companies earnings or is it from you wage paid to you by your company? 

    I asked student finance UK and got an extremely vague answer. 
    It depends whether you are self-employed or whether you are an employee. If you are self-employed the company's earnings are your earnings. If you are an employee then the company's earnings are the company's and your earnings from the company are what gets taxed for National Insurance and Student Loans.

    The full regulations are here:
    http://www.legislation.gov.uk/uksi/2009/470/contents/made

    E.g. if you are self-employed then the following is what counts (for £15,000 substitute "the repayment threshold" by virtue of the 2011 amendments http://www.legislation.gov.uk/uksi/2011/784/contents/made ):
    http://www.legislation.gov.uk/uksi/2009/470/regulation/29/made

    If you are employed then the following is what counts (again substitute the current repayment threshold for £15,000):
    http://www.legislation.gov.uk/uksi/2009/470/regulation/44/made

    Each employment counts as separate income and you get the benefit of the full repayment threshold on every separate employment (this mimics National Insurance).

    If you are have to fill in a tax return then it's your total income that gets taken into account, regardless of how many separate jobs you had. Any repayments already deducted are taken off before calculating your tax obligation through the self-assessment. 
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