Student Finance Loan Repayment and Company Car Query

tasticz

Hi there,

Myself and my friend have two different understanding so thought it is best asked here.

Assume a person has a salary of £30,000 + company car or car allowance of £5,000 per annum.

Total package = £35,000

If this person takes car allowance instead of company car, then the student finance will be due on full £35,000.

What happens if this person takes company car instead of car allowance?

The package will then become £30,000 + company car (we understand they will need to pay BIK for the company car). Is the student finance only paid on £30,000 in this case or still the full £35,000 or £30,000 + the BIK value?

Thanks in advance.

tasticz

uhh anyone?

Jeremy535897

See https://www.gov.uk/hmrc-internal-manuals/collection-of-student-loans-manual/cslm17055

[Deleted User]

tasticz said:

uhh anyone?

Benefits in kind do NOT count as income upon which student loan payments are levied.

tasticz

[Deleted User] said:

tasticz said:

uhh anyone?

Benefits in kind do NOT count as income upon which student loan payments are levied.

hi there,

thanks for your response so if i understood correctly, we could save student finance loan repayment by taking company car instead of company car allowance as the overall salary for the purposes of student finance would be reduced.