Repayment Threshold

Allan87

I have PAYE income and I'm self employed with my own business at the same time.  On my last self assessment I input my PAYE income and what was a loss on my self employed business that took my income below the threshold for repaying student loan, or so I thought.  I contacted SLC who said they only look at PAYE and so my income was above the threshold and the repayments taken from PAYE were not going to be refunded.  Is this the correct stance on the threshold?

[Deleted User]

Hello, @Allan87

Yes, I'm sorry to say it is. 

Any loss you make in respect of a Self Assessed Income has no bearing on your Earned Income from Employment in any regard. You don't get a rebate on your PAYE Income Tax because you made an SA Loss, your student loan repayment is no different to your Tax or NI contributions in that regard. 

The repayments taken at source were correctly calculated in line with your earnings, by your employer, based on the legislation that governs the student loans repayment scheme.

You are ONLY entitled to a refund of your student loan repayments of your whole, combined income from Self Assessment AND Employment is below the earnings threshold set in the relevant year.

Sorry I don't have better news for you.

Allan87

SFSLExpert said:

Hello, @Allan87

Yes, I'm sorry to say it is. 

Any loss you make in respect of a Self Assessed Income has no bearing on your Earned Income from Employment in any regard. You don't get a rebate on your PAYE Income Tax because you made an SA Loss, your student loan repayment is no different to your Tax or NI contributions in that regard. 

The repayments taken at source were correctly calculated in line with your earnings, by your employer, based on the legislation that governs the student loans repayment scheme.

You are ONLY entitled to a refund of your student loan repayments of your whole, combined income from Self Assessment AND Employment is below the earnings threshold set in the relevant year.

Sorry I don't have better news for you.

Actually I do and have gotten a rebate on my PAYE Income Tax because I made an SA loss, that's why I don't see why SLC treats it differently, as the loss puts my net earnings below the threshold.  I'll have to contact HMRC for more info I guess.