[VtecMB3]

Im currently doing AS, starting A2 in sep. Was just wondering how it works, i hardly have any knowledge about this, the goverment pays for the fee's, then we pay it back when we earn 21K/year + ?

If so, what if i get a job and just earn 20 grand a year, but really on the side i be doing other work like cash in hand etc, and have alot of income from there too, and wont be taxed for that ? Thanks

[VtecMB3]

And is it true that if you dont earn 21k plus, after 10/20 years the loan just disapears?

[izpenguin]

I can answer your last question: The loan is written off after 30 years if you haven't paid it back by then.
I can't answer the other questions though.

[puddledancer]

http://www.moneysavingexpert.com/stu...nt-loans-repay

Is explained well here.

[KJane]

(Original post by VtecMB3)
Im currently doing AS, starting A2 in sep. Was just wondering how it works, i hardly have any knowledge about this, the goverment pays for the fee's, then we pay it back when we earn 21K/year + ?

If so, what if i get a job and just earn 20 grand a year, but really on the side i be doing other work like cash in hand etc, and have alot of income from there too, and wont be taxed for that ? Thanks

Well it'd be illegal to be paid cash in hand without your tax being taken. You'd have to declare it. And what are you going to do if work offered you a pay rise one year that would take you over 20K a year? Or would you not want progress into a higher paid role after promotion? It'd be hard to avoid paying it forever.

It's more than 10 years, I thought it was around 25-30 years before it gets written off.

[raechelle]

When you earn over a certain amount they'll take a percentage out of your bank account. If you haven't repaid after 30 years then it gets 'written off'.
I've been told that the amount taken out is "so small you hardly notice it" although I doubt that's the case. The extra jobs on the side will have to be accounted for although I'm not entirely sure how and whether that would count as freelancing.

[Origami Bullets]

You pay 9% of anything you earn over £21k per year (pre-tax). So, for instance if you earned £30k, then you'd pay 9% of £9k, so £810 a year, or £67.50 a month.

Being paid cash-in-hand is illegal anyway - what you're proposing is tax evasion, which people are regularly imprisoned for. If you never earn more than £21k, then you never pay anything back. If there's anything that you haven't paid off after 30 years, then it gets written off.

[Dragonfly07]

You wouldn't have to pay uni fees back from a job that no one knows you're working. I would consider that unethical, though.

[Aack]

(Original post by Dragonfly07)
You wouldn't have to pay uni fees back from a job that no one knows you're working. I would consider that unethical, though.

I would consider our tax system unethical.

[VtecMB3]

Oh okay, and to the question of what if i get a pay rise, i just wont accept it. So basically will have 1 legit job, and another job thats cash in hand. Loads of people have jobs paid cash in hand

Thanks for all the replies.

[VtecMB3]

Just read that link to that forum, it says that if you 'die' the debt gets wiped of. That gives me an idea .. hmmmm

[RibenaRockstar]

Lots of people have jobs paid cash in hand but if over the tax threshold they must declare it.
Eg, I do private tutoring and am paid cash in hand. I earn about £2000 a year. This is less than the tax threshold so I don't have to declare it.

If I earnt £15k cash in hand from this I'd have to pay income tax

[VtecMB3]

Thanks for that point! So over 15 grand and u have to declare it. Got it.

[Kate.]

(Original post by VtecMB3)
Thanks for that point! So over 15 grand and u have to declare it. Got it.

£15,000 isn't the tax threshold, so no. It's lower than that.

And anyway:

What about cash in hand?

It's illegal for your employer to pay you cash in hand without deducting tax and National Insurance contributions from your wages.

If you accept money in this way, you risk losing your employment rights and the right to some benefits, such as:
maternity or paternity leave
sick pay
Jobseeker's Allowance

In addition you could end up having to pay the tax and National Insurance contributions yourself.

If you suspect your employer of not paying tax or National Insurance contributions on your wages you can report them in confidence using the Tax Evasion Hotline on Tel 0800 788 887. Lines are open Monday to Friday 8.00 am to 6.00 pm and are normally less busy before 9.00 am.

http://www.hmrc.gov.uk/working/intro/casual.htm

[GdotL]

You sound like some fradulent Asian guy - why don't you just get the job you want and pay back the loans like everyone else ffs.

[VtecMB3]

Okay understood, i should just pay tax and fee's normal. Thanks for all replies. End.

[VtecMB3]

(Original post by GdotL)
You sound like some fradulent Asian guy - why don't you just get the job you want and pay back the loans like everyone else ffs.

Im pakistani, lol. And yeah, i will, hopefully.

[GdotL]

(Original post by VtecMB3)
Im pakistani, lol. And yeah, i will, hopefully.

LOL I initially wrote Pakistani but I thought I'd get a hate brigade so I changed it! No offence intended btw

[SnoochToTheBooch]

just go for it man, none of us are ever gonna pay it all back and it's not like a proper debt anyway, if you can't pay it you aren't gonna have the bailiffs round

[bahjat93]

(Original post by VtecMB3)
And is it true that if you dont earn 21k plus, after 10/20 years the loan just disapears?

(Original post by VtecMB3)
Im currently doing AS, starting A2 in sep. Was just wondering how it works, i hardly have any knowledge about this, the goverment pays for the fee's, then we pay it back when we earn 21K/year + ?

If so, what if i get a job and just earn 20 grand a year, but really on the side i be doing other work like cash in hand etc, and have alot of income from there too, and wont be taxed for that ? Thanks

If you go to Uni and after graduation you earn £20k a year for 30 years, i'm sorry to say the Qualification you gained from what ever Uni you went to isn't worth the paper it's written on