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Student loan repaid... no better off?
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I finished repaying my student loan in March. The deductions (Surprisingly!) seamlessly stopped from my payroll and all is good.
I, probably wrongly, assumed that once I stopped making these deductions, that I might see an improvement in my overall pay, however the vast majority of the amount I now don’t pay in student loan (was approx £300 p/m) is now just swallowed up in tax and NI contributions instead.
Ive read lots of literature online about this but nothing specifically seems to cover the subject, and whilst I’m sure it’s probably correct, I wondered if someone could explain in simple terms how the tax situation would have worked pre and post student loan deductions?!
I, probably wrongly, assumed that once I stopped making these deductions, that I might see an improvement in my overall pay, however the vast majority of the amount I now don’t pay in student loan (was approx £300 p/m) is now just swallowed up in tax and NI contributions instead.
Ive read lots of literature online about this but nothing specifically seems to cover the subject, and whilst I’m sure it’s probably correct, I wondered if someone could explain in simple terms how the tax situation would have worked pre and post student loan deductions?!
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Comments
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But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
You should be that £300 a month better off as SL is an extra deduction from your wage, it is not deducted from gross wage before tax. Post up your monthly pay slip details and someone will have a look, obviously the pre and post SL are across different tax years so something else may have come into play with gross pay or tax codes. Likely better posting on the Cutting Tax board.
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