Hi
I have to file a tax return of my client which have some self employments income and employment income.
At the P60 of my client there is student loan deductions during the year.
Do i need to consider student loan deductions at the time of preparing tax return?
What is the tax treatment of student loan deductions?
regards
Replies (7)
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Consider the entries on
the main tax return page TR5 at boxes 1, 2 & 3.
They are apparently in a position to be repaying the student loan and may have a further charge through the return based on total income including the self employed income.
Not allowable
They're not allowable for tax, if that's what you're getting at.
They don't affect the tax payable but the repayments are dependent on how much the creditor earns and are collected with the tax and Class 4 NI.
But they are a credit
against the calculated loan repayment charge.
So if the SL charge per total income in the return was £1,500 but the employer had deducted £1,000 that you entered in Box 2 on SA100-TR5 then the net SL charge entered i Box 2 on SA110-TC1 is £500
Yes of course
You compare what you owe with what you've paid and send the difference.
Just like tax and NI.