What to do if you’ve lost your UTR number
Whether you're someone who likes to file your annual self-as...
By Lynne Gowers 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.
If you have made the decision to set up and run a limited company, one of your priorities should be ...
Published: 11th December 2018
Over the holiday period, we are closed on the Bank Holidays and the office will close slightly early...
Published: 10th December 2018
We want to warn all of our clients and readers about a sharp rise in the number of phone scammers pr...
Published: 6th December 2018
HMRC are dogged in their efforts to recoup unpaid tax through schemes that they view as tax avoidanc...
Published: 8th November 2018
Operating as a sole trader does exactly what it says on the tin – you are running your busines...
Published: 1st November 2018
Yesterday, Chancellor Philip Hammond delivered his Budget to the House of Commons, promising an end ...
Published: 30th October 2018
The director of an engineering company based in Aberdeenshire has been banned for seven years from r...
Published: 26th October 2018
Making Tax Digital, aka MTD, is HMRC’s project to modernise and digitise the tax system by 202...
Published: 22nd October 2018
October’s here and the Summer’s heatwave is fast becoming a distant memory. As well as a distinc...
Published: 4th October 2018
Registering for VAT (value added tax) allows your business to claim the VAT back on VAT rated busine...
Published: 28th September 2018
50,000 people, including nurses and teachers, are facing life-changing tax bills going back over 20 ...
Published: 21st September 2018
If you need a little help to find the right accountancy service, don’t worry.
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.