Hi,
Wondering of anyone can help me?
A client of mine is in employment and is having deductions taken out of his pay for a Student Loan.
My question relates to the fact that when I put together his self-assessment and include the student loan deduction it calculates an additional amount of income tax to pay? Can anyone cast any light on why this is and also how is it calculated?
Many thanks
Matt
Matt Wadsworth
Replies (1)
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Calculation
The working sheet for the Student Loan Deductions cxan be found here
http://www.hmrc.gov.uk/worksheets/sa110-notes.pdf (pages 36-38)
Basically the repayment is 9% of income over £15k (unearned income of less than 2k is not counted). If the employer has not deducted enough the balance is collected through Self Assessment