we have a new starter who should be making student loan payments but as his salary for the rest of the year dos't go over the threshold they won't be deducted from his salary. He was self employed for the first 4 months of the year, and has been making the student loan payments as part of the self assessment process for previous years
My/his question is what happens this year? Does he do a self assessment after April 16 and then get stung for a whole years student loan? Is there anyway e can force the payment through payroll for him apart from upping his salary to the threshold
Hi Alison
Not sure what you mean by stung for a whole years loan. If the salary now doesnt take him over the threshold for the whole period then he will make no repayments to the loan. When he does the self assessment for the 4 mths of this year then he will pay a percentage based on his overall earnings for the year. Unless he made massive profits in those 4mths surely the loan repayment wouldnt be much (or why would he then be working at a job earning so much less?). You could do a quick calculation based on his net salary now and his profit from those 4 months if you really want to know but from your perspective just mark the student loans marker on your payroll for any months where it does creep over due to overtime etc.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
without the clients mithering! 
)
