Student loan deductions

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 I have a client with a student loan.   She has 2 employments and the first is high enough for student loan repayments to kick in and be collected via the payroll.  No student loans deductions are collected via PAYE on the second employment due to it being well under the threshold.

in addition, the client has dividend income and rental income over £2000.

As you can imagine, a large student loan repayment has popped up on her 17/18 tax return based her total income.  Only a small amount was paid via the payroll in accordance to her salary level and this was lopped off on the tax computation.

The client wants to know if, going forward, she can make larger repayments via the payroll or any other means so that she doesn’t have this large underpayment each year.

I know voluntary repayments can be made directly to the student loans company but these cannot be taken into account for tax return purposes.   Is there a way? Or is it a case of her trying to estimate the potential underpayment and budgeting accordingly? 

Replies (3)

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ALISK
By atleastisoundknowledgable...
09th Jan 2019 07:51

As far as I’m aware, no she can’t.

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By SteveHa
09th Jan 2019 08:12

Why anonymous?

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By lesley.barnes
09th Jan 2019 10:21

I've had a similar scenario and there was no work around to allow larger repayments to be taken through payroll. The system isn't flexible enough and paying off a lump sum wouldn't work either. She will need to estimate what she thinks her tax bill will be and put the money to one side.

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