Student Loans + Work

sammy65

Hi guys,

Just have a question - I am at university, and have taken out a student loan for the year. I also do part-time work, and earn around £4,000 per year. Do I need to pay tax?

Some have told me that, since it's £7,500 combined earnings (£3,500 student loan + £4,000 from part-time work), you'll have to pay tax, while others have said no tax is due, since the student loan is seperate and not included for tax calculation purposes?

Thanks.

Middlers

A student loan is a loan and not classed as part of your earnings. You will be able to earn £5435 without paying tax. Either pay tax initially and claim back at year end or fill in form P38(S) and recieve your payments free of tax.

www.hmrc.gov.uk/forms/p38s.pdf

iNFLUENCE_2

sammy65 wrote: »

Some have told me that, since it's £7,500 combined earnings (£3,500 student loan + £4,000 from part-time work), you'll have to pay tax.

Beat those that have told you this with a large stick. Simply isnt true, anbd quite an unhelpful peice of mis-information.

Student loans dont form part of the calculations for income tax.