tax and student loan query

[silverfox1060]

hi just wondering if someone can help, i have just finished uni and gone into partnership with a collegue in a coach hire business, just wondering would my debt with the student loan company have an effect on the company tax or would it just be taken from my wage automatically through my NI?
Also would this student loan affect my partner in any way?

[Eric Mc]

It sounds like you are a director in a limited company (rather than a partner in a partnership).

Legally, it is you personally who is liable to repay your own student loan, not the comapny's. Therefore, the amount you pay back will be based on the income you extract personally from the company.

If the bulk of your income is going to be in the form of salary (i.e. director's remuneration) then the student loan amounts will be collected through the monthly PAYE deductions from your salary. If the bulk of your income is through dividends, then the student loan repayment will be collected through the Self Assessment system and will be payable in one hit each January.

Your company accountant should be able to explain the mechanics of all this to you once you have informed him of your intended salary/dividend levels.

Edited by Eric Mc on Monday 2nd February 08:13

[silverfox1060]

Thanks for the advice Eric will get the accountant to have a look into things once everything is finalised.