If I'm not being taxed until 2010...

Lokolo

Student Loan does not count as income I don't think because of tax credit or something, according to the University of Westminster

[edit]

quote: "If you receive a Student Loan, this does not count as income for Tax Credit purposes. "

http://www.wmin.ac.uk/page-14708

prudentsaving42

Student loans are definitely counted as income, except when dealing with council tax and child tax benefits.:o

EDIT:

Sorry I am referring to the loans which you take out for living purposes (Maintenance Loans)

Student loans for tuition fees are NOT counted as income (Tuition Loans)

Basically, any money that SLC sends directly to your bank is income.

Regards,

Kenan

Lokolo

Could you link me anywhere because I have not heard of this before.

prudentsaving42

http://www.directgov.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_070816

Lokolo

Thanks.

the majority of any Student Loan for Maintenance you are entitled to, even if you choose not to take it out

Whats the majority? :-/

Looks like I may own the tax man some moneh!

[edit]

When working out if you’re eligible for income-related benefits while you are a higher education student, certain types of Student Loans, grants and other types of student finance will be counted as income by Jobcentre Plus and your local authority’s Housing Benefit section.

I think the student loan only counts as income towards benefits and are not counted as income in terms of being part of you actual income. I haven't included it in any tax forms and HMRC know I am at university and didn't say anything.

JimmyTheWig

I agree that if you're not paying tax you should get the best interest rate available, regardless of the taxable status of the account. I.e. in this instance go for the savings account rather than the ISA.
As has been said this is only valid if you can put all the savings into an ISA when you start paying tax - i.e. you don't have more than £3600 savings. In this instance you are below that limit, so still proceed with the savings account.

JimmyTheWig

If student loans are taxable income, do you get tax relief when you pay them off?

Lokolo

http://www.hmrc.gov.uk/students/are_st_loans_taxable_6_4.htm

Student loans aren't taxable so I do not think they count as income unless you are trying to get benefits.

LittleVoice

I cannot see that a student loan can be counted as income for tax purposes. If I borrowed money on my Visa card, they wouldn't count it as income, and logically a student loan isn't either.

I can understand that it would be income as far as benefits are concerned as that calculation would be concerned with how much money you had at your disposal - just as capital in the form of savings would count for benefits but not for tax.

prudentsaving42

As I said previously any money you receive DIRECTLY from SLC to your bank counts as income. I have confirmed this with SLC.