James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
Are these taken out before or after tax?
Say for arguments sake my repayments are £450 a month and I pay 40% tax. Once it's paid off in full, will I see an additional £450 a month in my take home or will I only see 60% of £450?
I have done a bit of Googling but couldn't find anything definitive.
I'm sure it must be after tax, so I would see a full £450 a month once it's paid off.
[Edited on 20-07-2011 by James]
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Mine were indicated in the stoppages next to the tax but I'm not sure whether the tax was adjusted later. I'm inclined to say they're subject to tax, can't think of any reason why they should come out tax free.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
I think they must be subject to tax as well. It's just like any other loan apart from the fact they come out automatically via PAYE with your employer.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
Just done an experiment on ListenToTaxman and it does come out after tax so I would see the full amount once it's paid off.
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Do you have an end date for the contributions to stop?
My employer carried on paying them, they ended up owing me £800 
|
sc0ott
Member
Registered: 16th Feb 09
User status: Offline
|
Got my student loan letter through today. Think its only about 40 quid a month which comes off as soon as im waged every month.
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
quote:
Originally posted by Ian
Do you have an end date for the contributions to stop?
My employer carried on paying them, they ended up owing me £800
This is to do with PAYE though isn't it. It doesn't update until the end of the tax year; you do get the over payment back
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
I got it back, but that's little consolation, I'm not in the business of lending SLC money while it costs me money to do it.
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
it doesn't get paid to SLC until year end though hence the confusion - its the same with your tax, AFAIK, your tax contributions aren't paid monthly, they're paid as a lump sump at year end when You're paid PAYE.
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
I know how it's supposed to work, I just don't like lending people money, particularly when they're getting it at zero interest!
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
I agree with your sentiment, but it isn't SLC who are gaining. Who holds the tax/SLC payments until year end - Is it HMRC, PAYE or the employers?
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Yeah might not be SLC, someone is doing alright though, few hundred quid off every student in the country for a few months.
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
I've got a spreadsheet for mine so I know as and when I should finish paying, my idea is to pay off a lump sum in the penultimate year so at the end of the PAYE year, I pay it off in the final month - hopefully, if the maths is right, its should mean I don't have any over payments and don't get stung for interest etc
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
at £450 a month SLC payments, Are you earning say £75,000 P.A.?
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
quote:
Originally posted by LiVe LeE
at £450 a month SLC payments, Are you earning say £75,000 P.A.?
That number was just for arguments sake. Good detective work though 
|
tom_simes
Show Staff
Organiser: South Wales
Premium Member
Registered: 12th Jan 05
Location: Undy, Newport Drives: Skoda Octavia vRS estate
User status: Offline
|
Yep, student loan is definitely after tax - the only thing that comes out pre-tax is my pension contributions.
|
Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
|
£450 a month, you must be on a lot of money to pay that much back and have your own place. Or, are you just trying to make yourself look good?
I pay £37 a month before overtime which at the moment is around £50 a month. I got a statement throught the other day and i'm not even covering the intrest at the moment. Looks like i will be paying this student loan back for the rest of my working years.
I'm almost certain in the original paper work it states the loan comes out before tax.
If it bothers you so much, why not ask you Accounts department?
|
sc0ott
Member
Registered: 16th Feb 09
User status: Offline
|
Didnt you read the comment 2 posts above yours?
Im also certain the slc girl took my before tax wage to work out how much they will roughly take.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
quote:
Originally posted by Andrew
£450 a month, you must be on a lot of money to pay that much back and have your own place. Or, are you just trying to make yourself look good?
The number was hypothetical FFS. I didn't realise the CS salary police would be all over this.
And as for asking my accounts department, in a company this size I probably wouldn't get a response for a week. I thought it would be easier to ask CS. In fact the easiest option was to put it through a tax calculator with and without student loan but I didn't think of that before I posted.
[Edited on 21-07-2011 by James]
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
I wasn't being Salary Police, I was being Jealous 
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
Wasn't really aimed at you. I just find it funny how every time you post something that has an outside chance of relating to how much you earn, you are accused of showing off.
If I bought a nice car I'd be reluctant to post it on here in case I was accused of showing off, despite this being a car forum.
|
Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
|
What is wrong with waiting a week for response? Either way you have to pay the student loan...
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
quote:
Originally posted by James
Wasn't really aimed at you. I just find it funny how every time you post something that has an outside chance of relating to how much you earn, you are accused of showing off.
If I bought a nice car I'd be reluctant to post it on here in case I was accused of showing off, despite this being a car forum.
I want a nice car
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
as you state its after tax- Its a good feelign when its paid off
At £40 a week I would suggest you just about clearing interest depending on the size of the loan so it will take forever to pay it off
amI right in assuming that its written off after 25 yeards
|
Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
User status: Offline
|
quote:
Originally posted by James
Wasn't really aimed at you. I just find it funny how every time you post something that has an outside chance of relating to how much you earn, you are accused of showing off.
That's CS for you. TI said it best..
quote:
The hootin' and the hollerin', back and forth with the arguing,
Where you from, who you know, what you make and what kind of car you in.
|
