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  • FIRST POST
    • RueyE
    • By RueyE 6th Nov 19, 5:53 PM
    • 18Posts
    • 21Thanks
    RueyE
    Bursary - Residual Household Income
    • #1
    • 6th Nov 19, 5:53 PM
    Bursary - Residual Household Income 6th Nov 19 at 5:53 PM
    Hi,
    We were wondering if anyone out there is able to provide any additional information on the following
    We are a low income household, normally less than 35k, however in the tax year being used to calculate this years' household income, it was affected by my wife's redundancy pay, of about 4.5k. This has meant according to Student Finance England (SFE) we have had an income (note I'm not stating taxable income) of just over 35k.
    The redundancy pay being less than 30k is NOT taxable income.
    York university web site states the following for it's bursay allocation, '2,000 in the first year and 1,000-1,100 in subsequent years. Residual household income must be 35,000 or less.'
    Again on the York University website it states the following
    Residual household income is defined as '*Residual household income is the gross taxable household income minus; pension contributions, and an allowable deduction of 1,130 for each other child or eligible student in the household. If you are under 25 the household income is normally that of your parents, or the parent you usually live with and their partner. If you are over 25 this would be the income of your partner.'

    SFE will not pass on to York the true taxable income amount (which should be about 31.5k), they will only submit the total income value (around 36k), that they have used to calculate the student loan element.

    Any help would be greatly appreciated
Page 1
    • venison
    • By venison 6th Nov 19, 11:28 PM
    • 3,910 Posts
    • 5,590 Thanks
    venison
    • #2
    • 6th Nov 19, 11:28 PM
    • #2
    • 6th Nov 19, 11:28 PM
    Have you contacted York to get their take on this?
    For the many NOT the few
    • RueyE
    • By RueyE 7th Nov 19, 9:20 AM
    • 18 Posts
    • 21 Thanks
    RueyE
    • #3
    • 7th Nov 19, 9:20 AM
    • #3
    • 7th Nov 19, 9:20 AM
    Hi,
    Yes we have previously (a few months ago) contacted York finance department, when we realised that the wording on their web site meant we would qualify for one of their bursaries.
    They informed us at that point that they can only work with the figures supplied to them by SFE.
    It has taken about two months of submitting paperwork, evidence and discussions for SFE to finally admit they have to include the non taxable element of our income because this is how they calculate the student loan figures. We don't have a problem with how SFE do their loan calculations.
    However in light of the fact the SFE processes do not allow them to differentiate between taxable income and overall income, and are seemingly unwilling to do so, then the figures supplied to York will include the non-taxable element.
    We have tried to contact York this morning, in order to discuss the situation, and await their response when they call back.
    I will provide an update when we hear something.
    • Starrystarrynight1
    • By Starrystarrynight1 8th Nov 19, 9:57 AM
    • 237 Posts
    • 371 Thanks
    Starrystarrynight1
    • #4
    • 8th Nov 19, 9:57 AM
    • #4
    • 8th Nov 19, 9:57 AM
    Redundancy payment is a taxable source of income, it just has the equivalent of the tax free allowance, up to 30K. Look at it this way, your entire salary is used in the assessment, they don't exclude the first 12500. It's the same with redundancy pay. Sorry, I know it isn't what you want to hear. The only thing I can think of is, if your total household income in the current tax year (19/20) is expected to be at least 15% less than the income in the tax year SFE used for the assessment, you can request a Current Year Income Assessment. You'll need to verify this at the end of this tax year and any necessary adjustments will be made to the amount awarded.
    -------------------------------------------------------------------------------------------------
    I used to be Starrystarrynight on MSE, before a log in technical glitch!
    • RueyE
    • By RueyE 8th Nov 19, 5:36 PM
    • 18 Posts
    • 21 Thanks
    RueyE
    • #5
    • 8th Nov 19, 5:36 PM
    • #5
    • 8th Nov 19, 5:36 PM
    Hi StarrystarryNight,

    Thank you for this explanation, that does make sense in what you are saying, despite not necessarily a good one for us.
    Interesting that it doesn't show on any official HMRC tax summary documents, or P60 documents for that year.
    Why SFE couldn't have told us this vital detail is a little beyond me?

    Anyway we unfortunately don't qualify for the 15% drop in this years' income, so miss out on that option too.
    It will just be a case of tightening our belts a little bit more than normal.
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