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Student Loan Repayment when owning a company

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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. 

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  • edited 11 July at 1:33PM
    Ed-1Ed-1 Forumite
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    edited 11 July at 1:33PM
    ideanoo said:
    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. 
  • ideanooideanoo Forumite
    28 posts
    10 Posts Second Anniversary
    Ed-1 said:
    ideanoo said:
    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. 

    So technically if you formed a company that generated £200,000 per year, you could pay yourself a salary from your own company of £25,000 - which would mean no student loan repayment?

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