Key tax dates and deadlines for 2018/19
It is an inevitable reality that, for anyone earning a livin...
By Jonathan London on 30th July 2013
Do you have an outstanding Government Student Loan? Are you unsure on how or when you need to pay this now that you are a director of your limited company?
If you have answered yes, we suggest you read on.
Yes, as a Director of a Limited Company you still have an obligation to make payments to The Student Loans Company.
As a shareholder and employee your gross personal income is made up of your gross salary and gross dividend payments from your Limited Company. There are now two different plans where Student Loan Company require repayments of loans, which are dependant on when you take out the loan.
Plan 1 (if the loan was taken out prior to 1st September 2012) – when an individual’s gross personal income exceeds £17,335 per year.
Plan 2 (if the loan was taken out after 1st September 2012) – when an individual’s gross personal income exceeds £21,000 per year.
The amount payable is calculated at 9% of the income that exceeds each threshold. There are also wider complexities should you have loans which apply to each plan, with more information available via the following links:
Unlike PAYE, deductions are not made on a regular basis from your income. The amount payable gets calculated on your self-assessment tax return and the liability is then paid to HMRC along with any PAYE and NI tax that is due. HMRC will then send the repayment to The Student Loans Company.
You will need to notify The Student Loans Company of any change in your circumstances. As a Limited Company Director and shareholder they will then typically ask for your Unique Tax Reference (UTR) Number. If you have already registered for your self-assessment tax return by completing a HMRC SA01 form then this number would have been sent to you by HMRC.
Here at Boox we like to give our clients as much help as possible with their finances, to help us achieve this please be sure to tell your dedicated accountant if you have a Student Loan liability. This will then allow us to incorporate an estimated Student Loan liability within your quarterly company health check.
Take a look at our recent blogs below.
As a business owner, your time is way too precious to spend hours dealing with HMRC or Companies Hou...
Published: 14th May 2018
“Never do tomorrow what you can do today. Procrastination is the thief of time” Charles Dicken...
Published: 11th May 2018
Congratulations! The very fact you clicked this far shows you are considering employing staff, and t...
Published: 17th April 2018
It is out with the old and in with the new when it comes to tax relief on childcare costs from April...
Published: 9th April 2018
The Boox accounting app has always been at the forefront of helping our clients understand their com...
Published: 26th March 2018
Spring has officially sprung and the start of the 2018/19 tax year is just around the corner –...
Published: 23rd March 2018
If your business is employing staff, you should already have a workplace pension in place, under the...
Published: 23rd March 2018
At this time of the year we are used to seeing the Chancellor holding aloft the red box ahead of the...
Published: 15th March 2018
A dispute has erupted between the BBC and 170 of its presenters over their tax arrangements and thei...
Published: 12th March 2018
The rush for taxpayers to file their 2016-17 self-assessment tax return is over for another year, an...
Published: 27th February 2018
If you are in the process of setting up a limited company or you are already the owner of an incorpo...
Published: 16th February 2018
If you need a little help to find the right accountancy service, don’t worry.
Get in touch with our friendly team for a FREE service consultation.
Thousands of contractors, freelancers and locums turn to Boox for help and advice with their limited company accounting. They love our personal service and app.
Specialist accounting for sole traders and the self employed, Boox combines easy online tools with expert support to take away the stress of handling your accounts.
Our combination of market-leading accounting software and expert personal advice gives you greater financial control and more time to grow your business.