How should I calculate my gross income for the purposes of deferring my UK student loan payments?
I'm in a salary sacrifice scheme at work whereby I can reduce my taxable salary as much as I like in exchange for my employer paying that same amount into my pension scheme. This is effectively an NI and income tax avoidance scheme (although it is legal and sanctioned by HM Revenue & Customs).
Each year the Student Loans Company writes to me and gives me the opportunity to defer starting to repay the student loans I took out whilst at university. To do this, I need to demonstrate that I earn less than a certain amount each month.
Now, the question is: what does the law say about the way I should calculate the gross income I declare to the Student Loans Company when applying for deferment? I would think it makes sense to follow the principles of filling in a tax return ie to use the figure which goes on my P60 rather than my notional salary before the pension salary sacrifice.
Do you have a definitive answer?
The amount on my P60 (after someone has done some jiggery-pokery with it) is my gross income for tax purposes. I'm interested in the legal position ie what I'm legally obliged to declare. Thanks
The clue is in "gross" income. You put down what your salary is before anybody does any jiggery pokery with it.
The clue is in "gross" income. You put down what your salary is before anybody does any jiggery pokery with it.
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