justjess15
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Hi,

There have been changes to my household income as my dad has recently retired, he now only receives money every month from his work pension. So my dad needs to fill in the Current Year Assessment form in order for my maintenance loan to be recalculated but I have a few questions about the form:

- Will both 'person 1' and 'person 2' sections need to be filled out? As in will I need to give information about my mum as well even though it's only my dad's income that has changed? Or can I just fill in 'person 1' with my dad's information?

- In question 1, it asks about income from salary and occupational pension. Does my dad need to fill in how much salary he earned in total from last tax year (April 2017) up till when he retired (November 2017) and then need to predict his total pension amount from November 2017 till April 2018?

- Do we need to provide evidence?

Any help/advice would be grateful
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John B SFE
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(Original post by justjess15)
Hi,

There have been changes to my household income as my dad has recently retired, he now only receives money every month from his work pension. So my dad needs to fill in the Current Year Assessment form in order for my maintenance loan to be recalculated but I have a few questions about the form:

- Will both 'person 1' and 'person 2' sections need to be filled out? As in will I need to give information about my mum as well even though it's only my dad's income that has changed? Or can I just fill in 'person 1' with my dad's information?

- In question 1, it asks about income from salary and occupational pension. Does my dad need to fill in how much salary he earned in total from last tax year (April 2017) up till when he retired (November 2017) and then need to predict his total pension amount from November 2017 till April 2018?

- Do we need to provide evidence?

Any help/advice would be grateful
Hi JustJess15,

- On the Current Year Income (CYI) form, we'll need you to have both person 1 and 2 sections be complete. This is so the assessors can compare the full tax year information from the 15/16 tax year with new reduced estimates on the CYI form.

- That's correct yes. We'll be looking for an estimate of the income for the full tax year. So the income from April until your father retired, then an estimate from then on.

- There will be no evidence required at the moment. We will write to your parents at the end of the 17/18 tax year (around April) and request a confirmation of income form (PR2 form) along with financial evidence.

I hope this information helps.

Kind regards,

John.
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justjess15
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(Original post by John B SFE)
Hi JustJess15,

- On the Current Year Income (CYI) form, we'll need you to have both person 1 and 2 sections be complete. This is so the assessors can compare the full tax year information from the 15/16 tax year with new reduced estimates on the CYI form.

- That's correct yes. We'll be looking for an estimate of the income for the full tax year. So the income from April until your father retired, then an estimate from then on.

- There will be no evidence required at the moment. We will write to your parents at the end of the 17/18 tax year (around April) and request a confirmation of income form (PR2 form) along with financial evidence.

I hope this information helps.

Kind regards,

John.

Yes, thank you for your help .

If we are not able to calculate my mum's income for this year (she is self-employed and it is difficult for her to work out her income after tax) would it be possible to just submit with my dad's information? Or is there something else we can do? Like if we roughly estimate her income for this 17/18 tax year how lenient will they be with the estimate?

Thank you,

Jess
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Shaun D SFE
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(Original post by justjess15)
Yes, thank you for your help .

If we are not able to calculate my mum's income for this year (she is self-employed and it is difficult for her to work out her income after tax) would it be possible to just submit with my dad's information? Or is there something else we can do? Like if we roughly estimate her income for this 17/18 tax year how lenient will they be with the estimate?

Thank you,

Jess
Thanks Jess.

I would advise maybe under-estimating the income if you are unable to calculate how much it will be exactly. We do require both sponsors.

Warm regards,

Shaun.
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justjess15
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(Original post by Shaun D SFE)
Thanks Jess.

I would advise maybe under-estimating the income if you are unable to calculate how much it will be exactly. We do require both sponsors.

Warm regards,

Shaun.
Thank you Shaun,

I was also wondering what sort of financial evidence will we need to provide at the end of the year? Like bank statements? Or just like a P60?
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John B SFE
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(Original post by justjess15)
Thank you Shaun,

I was also wondering what sort of financial evidence will we need to provide at the end of the year? Like bank statements? Or just like a P60?
Hi Jess,

For financial evidence it would mostly depend on where the income came from. For income from employment a P60 or a final month payslip is perfect, for self employment a self assessed tax return would be ideal.

Best wishes,

John.
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justjess15
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Hi again,

As mentioned, my dad retired in Nov so his financial salary for this year is a lot lower. However, he also received a lump sum from his pension, would this be taken into account to his income for the year if I have his income assessed for this current year? This would mean his income would come up to the same as before or possibly higher and meaning I would get less loan.
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Erin SFE
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(Original post by justjess15)
Hi again,

As mentioned, my dad retired in Nov so his financial salary for this year is a lot lower. However, he also received a lump sum from his pension, would this be taken into account to his income for the year if I have his income assessed for this current year? This would mean his income would come up to the same as before or possibly higher and meaning I would get less loan.
Hi justjess15,

We do take into account any lump sum payments that your dad will have received in the last tax year as income. We will assess you based on the overall income received in the 2017/18 year.

Thanks Erin.
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username3649056
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"We do take into account any lump sum payments that your dad will have received in the last tax year as income. We will assess you based on the overall income received in the 2017/18 year. "

The PFF2 application form specifically states with regard to what to include within lump sums

"Other taxable income - before expenses and tax taken off Foreign earnings not taxable in the UK Taxable lump sums Any redundancy payments or compensation for loss of job Lump sums or benefits received from an Employer Financed Retirements Benefit Scheme excluding pensions"

Can you clarify your advice with regard to Pension Commencement Lump Sums which are not classed as income for tax purposes.
Last edited by username3649056; 1 year ago
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Lynsey SFE
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(Original post by RobertH09)
"We do take into account any lump sum payments that your dad will have received in the last tax year as income. We will assess you based on the overall income received in the 2017/18 year. "

The PFF2 application form specifically states with regard to what to include within lump sums

"Other taxable income - before expenses and tax taken off Foreign earnings not taxable in the UK Taxable lump sums Any redundancy payments or compensation for loss of job Lump sums or benefits received from an Employer Financed Retirements Benefit Scheme excluding pensions"

Can you clarify your advice with regard to Pension Commencement Lump Sums which are not classed as income for tax purposes.
Hello,

Lump sums from a Private Pension scheme or an Occupational Pension must be included in the PFF2 as this has come from a taxable source. These payments are not taxable in themselves, however like redundancy payments; they are from a taxable source. We will require evidence of payments received which can be in the form of a pension statement or a P60P.

Thanks, Lynsey.
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username3649056
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I think if you check you will find this statement is incorrect if you follow the guidance within your document "Paper tax return guide for tax year 2017-18" you will find that a Pension Commencement Lump Sum (PCLS) payment is not included within the Self Assessment Tax return and should not be included within Household income of PFF2. Other potentially taxable pension lump sums should be included but not the PCLS.
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Lynsey SFE
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(Original post by RobertH09)
I think if you check you will find this statement is incorrect if you follow the guidance within your document "Paper tax return guide for tax year 2017-18" you will find that a Pension Commencement Lump Sum (PCLS) payment is not included within the Self Assessment Tax return and should not be included within Household income of PFF2. Other potentially taxable pension lump sums should be included but not the PCLS.
Hello,

I’m unsure which guidance you are referring to, was this a Student Finance England document?

Thanks, Lynsey.
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username3649056
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Yes this is an SFE document. This website will not let me load the document but it's filename is

sfe_tax_return_guide_1920_o.pdf

This identifies in detail which boxes from the Self Assessment Tax Return should be used to derive the numbers to be entered into the SFE documents such as PFF2

The relevant section is

Q3 Other taxable income or lump sums

Short paper tax return -
SA200 Box 7.1

Full paper tax return -
SA100 TR3 Box 17, SA101 Ai2 Box 12, SA101 Ai2, Box 3, SA101 Ai2 Box 4, SA101 Ai2 Box 5 ,SA101 Ai2, Box 9
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Lynsey SFE
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(Original post by RobertH09)
Yes this is an SFE document. This website will not let me load the document but it's filename is

sfe_tax_return_guide_1920_o.pdf

This identifies in detail which boxes from the Self Assessment Tax Return should be used to derive the numbers to be entered into the SFE documents such as PFF2

The relevant section is

Q3 Other taxable income or lump sums

Short paper tax return -
SA200 Box 7.1

Full paper tax return -
SA100 TR3 Box 17, SA101 Ai2 Box 12, SA101 Ai2, Box 3, SA101 Ai2 Box 4, SA101 Ai2 Box 5 ,SA101 Ai2, Box 9
Hello,

I do apologise, I’m unable to locate the guide.

Can you confirm where you located it?

Thanks, Lynsey.
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username3649056
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Follow the links through from:- https://www.gov.uk/student-finance-forms
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Lynsey SFE
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(Original post by RobertH09)
Follow the links through from:- https://www.gov.uk/student-finance-forms
Hello,

I do apologies for the confusion, I didn’t realise the guide you were referring to was the PFF2.

I’ve spoken with the Regulatory Support Team, to get some clarity. You are required to include the pension lump sum you’ve received, as this will have been declared to the HMRC.

We complete a Verification of Household Income (VHI) check, this confirms the declared income figures verified with HMRC records, if this returns a variance, we would request evidence.

Thanks, Lynsey.
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username3649056
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The document is not the PFF2 but guidance SFE have produced on how to fill PFF2 and other SFE documents declaring household income.

I think you maybe treating all lump sum payments from pension the same, and they are not. The SFE guidance documents help however.
Last edited by username3649056; 1 year ago
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