Self employed AND employed - student loans?!

elbow_fiona

I'm employed and self employed. I had been under the impression that these were counted as separate jobs and so I wouldn't repay student loans on either until they were over the repayment threshold separately (see gov.uk page on Repaying your student loan/How much you repay). I am unlikely to ever earn over the repayment thresholds from my freelance work alone.

However having just done my tax return this doesn't seem to be the case - I am being charged student loan repayments on my self employed income (and perhaps even overcharged as I paid some SL from my PAYE payslips which aren't in the tax calculation..?). 

I am now panicking about next year's tax return, as my PAYE job in 24-25 will have paid me enough that I need to in essence save 35% of all self employed income for tax and student loans alone. Is this right?! 

marcia_

elbow_fiona said:

I'm employed and self employed. I had been under the impression that these were counted as separate jobs and so I wouldn't repay student loans on either until they were over the repayment threshold separately (see gov.uk page on Repaying your student loan/How much you repay). I am unlikely to ever earn over the repayment thresholds from my freelance work alone.

However having just done my tax return this doesn't seem to be the case - I am being charged student loan repayments on my self employed income (and perhaps even overcharged as I paid some SL from my PAYE payslips which aren't in the tax calculation..?). 

I am now panicking about next year's tax return, as my PAYE job in 24-25 will have paid me enough that I need to in essence save 35% of all self employed income for tax and student loans alone. Is this right?! 

 You are assessed for student loan repayments based on your total income not for each job individually 

HMRC will already know about your PAYE job 

elbow_fiona

On the gov.uk website, under 'Repaying your student loan' and 'How much you repay', there's a section called 'If you have more than one job' - which suggests that it isn't always be the case - hence my confusion! 

I know that the advice is widely considered not to try and repay undergraduate student loan, but I'm now wondering about trying to repay my PG loan faster. If I do have to pay from my freelance income, it will mean I'm just below my repayments equalling the interest (which is currently 7.3%). 

silvercar

If your PAYE income is below the threshold, you won’t make any student loan repayments from that income.

On your self assessment form, it will calculate your total income and the amount you should repay. This will come from your total income, but I see how you feel it is coming from your SE income alone as you are seeing that as a top up to your earnings and this is what is triggering the payment.

if you have paid some SL repayments from your PAYE income this will be taken into account.

Whether you should make voluntary repayments of your PG loan, depends on your future income expectations.

I’ll move this to the student board.

Ed-1

marcia_ said:

elbow_fiona said:

I'm employed and self employed. I had been under the impression that these were counted as separate jobs and so I wouldn't repay student loans on either until they were over the repayment threshold separately (see gov.uk page on Repaying your student loan/How much you repay). I am unlikely to ever earn over the repayment thresholds from my freelance work alone.

However having just done my tax return this doesn't seem to be the case - I am being charged student loan repayments on my self employed income (and perhaps even overcharged as I paid some SL from my PAYE payslips which aren't in the tax calculation..?). 

I am now panicking about next year's tax return, as my PAYE job in 24-25 will have paid me enough that I need to in essence save 35% of all self employed income for tax and student loans alone. Is this right?! 

 You are assessed for student loan repayments based on your total income not for each job individually 

Not true in the case of PAYE jobs. Each PAYE job has a separate monthly threshold (as with National Insurance).

The only time the total annual income is considered for student loans is if you have to do a tax return. Otherwise annual income is not taken into account at all.

elbow_fiona

Thanks, that now seems clear. It feels like freelance work is being punished here as if I had two separate PAYE jobs, I wouldn't have to pay towards my SL, whereas with a PAYE job and freelance, I do have to pay. It's just a bit baffling that it's a different system - but at least I'm clear now. Thanks!