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    Student loans question

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    Would Erudio ( the private firm who bought out student loans ) count work related expenses such as fuel and lunch as income?

    I have a very distressed family member who has been messed around no end by this company.

    She is now worried they will want to count this as income and if they do this would push her over the earnings threshold

    My advice is this, she should be ok because taxable expenses are as follows :

    'expenses paid by your employer when those expenses are not totally and necessarily incurred in doing your job including travelling expenses between your home and your place of work, and expenses incurred for the care of a member of your family, such as child minding costs'

    In her case the expenses are totally and necessarily incurred in doing her job as she has to travel around from place to place as part of the job and so has to pay for fuel. Lunch im not so sure on but i would argue that is is necessary because she is always out of area due to to the job.

    15 Comments

    Any payments that are counted as part of the gross for National Insurance Contributions would be used as the basis of the student loan repayment calculation. So get them to look at their current pay slip to see if the niable gross is on it

    legitimate expenses are not normally classed as part of this gross. However lunch is not normally something you can claim as an expense unless you are away from main place of work for the entire day...

    note there is a difference between taxable gross and ni able gross

    Original Poster Banned

    IamMT

    legitimate expenses are not normally classed as part of this gross. … legitimate expenses are not normally classed as part of this gross. However lunch is not normally something you can claim as an expense unless you are away from main place of work for the entire day...



    She is away and out of area for the day.

    She also has to pay fuel for the car.

    Im on the phone now and on the wage slip it has the code T=Taxable and N=non taxable. Next to the travel expenses and lunches it has 'N' , so im guessing all is well

    Elton Chong

    She is away and out of area for the day.She also has to pay fuel for the … She is away and out of area for the day.She also has to pay fuel for the car.Im on the phone now and on the wage slip it has the code T=Taxable and N=non taxable. Next to the travel expenses and lunches it has 'N' , so im guessing all is well

    looks good check the notable gross though

    As long as she has paid for these expenses first out of her money and then claimed for them then they are non taxable as tax was originally paid on these.

    Original Poster Banned

    numb3r9

    As long as she has paid for these expenses first out of her money and … As long as she has paid for these expenses first out of her money and then claimed for them then they are non taxable as tax was originally paid on these.



    So in short, can the student loans Co count these expenses as income?

    If she did as I mentioned then no, as the money has already been taxed at her standard rate and the expense amount reclaimed is not additional money.

    Original Poster Banned

    numb3r9

    If she did as I mentioned then no, as the money has already been taxed at … If she did as I mentioned then no, as the money has already been taxed at her standard rate and the expense amount reclaimed is not additional money.



    Yeah she definitely pays up front. I know this cos I suggested she complains about this cos she's always out of pocket.

    Erudio are notoriously bad and crooked though from what iv read. Any chance they could try to argue it as an additional income?

    Also when you say it's been taxed already, what do you mean. Do you mean Vat? In an earlier post of mine in this thread I mention it has the code 'N' next to it which means non taxable.

    NO they cannot argue it is additional income. She has paid upfront and is only reimbursed for the expense. She meets the company policy for the expense (I presume she has to send in receipts etc) so there is no monetary gain for her.

    By tax I mean Income Tax, she is paying upfront so is using money that she has earned, by earning she has already paid income tax on this money, this is why there is an "n" next to the amount as it cannot be retaxed.

    Her tax form will show this as well.

    Edited by: "numb3r9" 5th Jul 2014

    Original Poster Banned

    numb3r9

    NO they cannot argue it is additional income. She has paid upfront and is … NO they cannot argue it is additional income. She has paid upfront and is only reimbursed for the expense. She meets the company policy for the expense (I presume she has to send in receipts etc) so there is no monetary gain for her.Her tax form will show this as well.



    That's reassuring. And yes she keeps all receipts and then gives them in.

    numb3r9



    Perfect then

    Original Poster Banned

    Many thanks for the assistance guys.

    Now we just have the next hurdle to overcome. She sent of deferral paperwork earlier in the year and they claim they never received it and have sent a demand for payment.

    They have a record of her asking for another form though as she messed up the original, so this Surely indicates she wanted to defer. Hopefully they will understand but reading a few horror stories about these guys.

    Elton Chong

    Many thanks for the assistance guys. Now we just have the next hurdle to … Many thanks for the assistance guys. Now we just have the next hurdle to overcome. She sent of deferral paperwork earlier in the year and they claim they never received it and have sent a demand for payment. They have a record of her asking for another form though as she messed up the original, so this Surely indicates she wanted to defer. Hopefully they will understand but reading a few horror stories about these guys.



    You are right about the company
    I am also having problems with my deferral. They took 2 months to do absolutely nothing and by then the previous deferrment period had expired. They never answered emails or called me back when they said they would. I have now made a complaint, but 6 weeks on they haven't dealt with that either! Next I'm going to go to the ombudsman and my MP - if they try to class this as a default to credit reference agencies I will be furious.
    I think more people should complain to their MPs about Erudio - we were never told before hand that the loans were going to be sold (at a rock bottom price), and even though the Student Loans Company said the original loan terms would stay the same Erudio are trying to force people to agree to all kinds of changes.

    Original Poster Banned

    Butterbean

    You are right about the company :(I am also having problems with my … You are right about the company :(I am also having problems with my deferral. They took 2 months to do absolutely nothing and by then the previous deferrment period had expired. They never answered emails or called me back when they said they would. I have now made a complaint, but 6 weeks on they haven't dealt with that either! Next I'm going to go to the ombudsman and my MP - if they try to class this as a default to credit reference agencies I will be furious.I think more people should complain to their MPs about Erudio - we were never told before hand that the loans were going to be sold (at a rock bottom price), and even though the Student Loans Company said the original loan terms would stay the same Erudio are trying to force people to agree to all kinds of changes.



    I will be supporting my cousin to fight them every step of the way.

    It may be that some money has to be paid in the meantime to preserve the all important credit score which is a shame.

    They are basically debt collectors and as we all know, debt collectors are the scum of the earth. It might be worth starting an Erudio thread. I would contribute to it and we can pool our experiences.
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