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Repaying Student Loan

15/01/19 | Advice & Guidance, HMRC, Tax Advice

Student Loan: It’s Payback Time

When you’re an employee it’s oh so simple. Your student loan repayment is little more than an extra line on your payslip that you curse at each and every month. But as a self-employed superhero there’s a lot more to it.

But don’t worry, Sidekick has you covered. Here’s what you need to know.

What You Need To Do

You’re already filling out your self-assessment tax return by the 31st of October (we hope) and filing it before the deadline. This makes your life much easier. HMRC will do most of the leg work and calculate it all for you. They’ll then pass on the amount owed to the Student Loan Company.

If Your Tax Return Is Late (Don’t Be Late)

If you don’t manage to get your tax return in before the deadline you’ve got a little more work to do. You or your accountant sidekick will have to calculate the amount you owe.

Here’s how you work it out:

Take your annual gross income.

Minus the threshold amount (see plans below). The figure produced is the amount you earned over the threshold.

Take 9% of this figure. This is how much you owe to the Student Loan Company.

The Plans

 

It’s not the most complicated aspect of your tax return to calculate, but it’s probably something you could simply do without. There is an alternative that exists –  Sidekick. We’re here as more than just an accountant – we’re your business advisers for a wide range of issues. What’s better still is that we do it all from £35 a month. Contact us now to find out what we can do for you.

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