My client's income/total earning has exceeded the student loan repayment threshold a few years back. However, none of his previous Self Assessment Returns from his previous accountant show any repayment due despite the income/total earning clearly exceed the threshold. I cannot see how can I do the same for him in his last year tax returns without misfiling. Is there such a thing to avoid paying student loan?
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I'm sure you've already read the guidance here:
https://www.gov.uk/guidance/tell-hmrc-about-a-student-loan-in-your-tax-r...
And checked on the Student Loan Company website?
In my experience, HMRC pretty quickly picks up if there's an omission where SL repayments should have been included in the return.
Tell your tightwad client that he needs to pay his debts.
You might be the next debtor he tries to evade.
Presumably, if there was "such a thing to avoid paying student loan even the total earning exceeded the threshold" then everyone would be doing it.
Presumably, if there was "such a thing to avoid paying student loan even the total earning exceeded the threshold" then everyone would be doing it.
Apparently if you’re in a partnership or LLP, student loan is calculated on turnover not profit. Some newish clients had just TOGC’d to a Ltd prior to meeting me due to this.
Is it, perchance, an old style "mortgage" type student loan?
Repayments of those are made directly to the Student Loans Company and are not collected via self-assessment.
The client would have to have graduated between 1990 and 1997 to get one of those loans so this may be a bit of a long shot.
Anyway, how do you know that the client has a student loan still outstanding?