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View Full Version : UK tax and student loan repayments - the truth!!!!!



melanwee
May 13th, 2004, 20:25
ok, lots of uncertainty about this so i made some phonecalls (inland revenue, national insurance centre and the slc website) to clarify the details.

i) income tax

if u are out of the uk for a full tax year then u get non-resident status and do not have to pay tax on any earnings abroad. therefore those who stay for 2 or 3 years will not pay any uk income tax.
staying for one year on jet means that u will not be out of the country for a full tax year therefore will not gain non resident status and will have to pay income tax on the full amount u earn. this is about £2,900 assuming a salary of £19,000 and 2005-06 tax rates and allowances (and assuming that i have correctly understood how they work it out!!)
u are allowed 91 days in the uk in a tax year and not get ur non resident status taken away however this only applies if u are going back to a full time job therefore travelling doesn't count.

ii) national insurance

we do not have to pay this. the lady said u can make a voluntary contribution if u like (wtf?!?) so that ur insurance contribution records are complete, don't think this matters if u haven't worked full time before.

iii) student loans

this has to be paid at a rate of 9% of income starting from the april after u graduate straight to the SLC. so for someone who graduates in june/july this year and only stays for a year this will only be 4 months payments.

this is the official line, how bendable these rules are i don't know, suppose we will have to ask ex-jets! hope this clears up the confusion......!

dobharrison
May 13th, 2004, 20:44
Thank you for finding out, Melanwee! That really clears things up for me. £2900 is a lot of money, so maybe I will go travelling.

richardp
May 13th, 2004, 21:06
iii) student loans

this has to be paid at a rate of 9% of income starting from the april after u graduate straight to the SLC. so for someone who graduates in june/july this year and only stays for a year this will only be 4 months payments.

this is the official line, how bendable these rules are i don't know, suppose we will have to ask ex-jets! hope this clears up the confusion......!

You can ring them up explain what you're doing and ask to defer it until you come back.

dobharrison
May 13th, 2004, 22:01
I've been deferring mine for years due to not earning enough.

joe
May 13th, 2004, 23:53
nice one MW.

Joe

Dynamis
May 14th, 2004, 00:26
Good work! I feel much richer now!!