Sipp and isa for child’s student loan

mose_2

When they ask your income do they also ask about sipps and isas? I’m self employed and pay into a sipp and isa. 

Is it better to move money from isa to sipp or doesn’t it matter? 

silvercar

Generally it is income not savings that they look at. So the value of your ISA or your SIPP is irrelevant. However if you put into a SIPP via salary sacrifice that would reduce your income. It depends how your self employment is structured as to if you can do salary sacrifice. 

The student loan company looks at income in one financial year, so you could look at moving income between tax years ie delaying payments by a few days.

mose_2

Thanks I’m a sole trader so no salary sacrifice just pay into sipp from earnings. 

Another question do my wife and I have to fill out a form separately about our finances or is it just one combined? 

kaMelo

mose_2 said:

Thanks I’m a sole trader so no salary sacrifice just pay into sipp from earnings. 

Another question do my wife and I have to fill out a form separately about our finances or is it just one combined? 

Although your child's maintenance loan is calculated on household income you will both need to complete a separate questionnaire.

No matter which method is used, money paid into a pension will reduce your income by the same amount for the purpose of calculating student maintenance loans. 

Don't forget, income includes things like dividend payments and taxable interest.