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Higher education

Talk to other parents whose children are preparing for university on our Higher Education forum.

Original poster

Student loan question

13 replies

Besta · 04/03/2015 22:11

When dd is applying for student finance, how much will be allowed for our two other dependant children? I can't seem to find this anywhere and when you fill in the finance calculator it doesn't ask about other children so we aren't getting a true picture of what she'll get.

Also, for the purposes of our "income", what's classed as income if we own a ltd company and draw a salary from there. Are we self employed or does that class as employed? Do we count income as salary + dividends?

Thanks

OP posts:
ISingSoprano · 05/03/2015 13:06

Are you paid a salary and pay income tax as PAYE or or you paid drawings as owners of the company?

MillyMollyMama · 05/03/2015 13:11

If you own the company you are self employed. If you take dividends this is income too. As indeed is any other form of income. We are in this position.

Unless you earn very little, she will probably get the £9000 fees and the basic loan for maintenance without a top up grant. Our DD is in London and my husband was shocked at how little the London addition is to the loan! If the form does not ask you about dependent children, then they do not factor them in.

HereIAm20 · 05/03/2015 13:24

It does not necessarily follow that if you own the company you are self-employed. You may be an "employed " director or you may be self employed (which is more likely if in an LLP or partnership). If you are unsure check with your accountant.

as stated before if there is no box as to how many dependants there are then it means they won't be taken into account.

eatyourveg · 05/03/2015 13:43

on the actual form it asks you about other dependent children and if they are in FE or HE. Pretty sure we have had to put where they are studying too

TalkinPeace · 05/03/2015 17:24

Directors of close companies are NOT self employed.

Notsoskinnyminny · 05/03/2015 18:43

I filled the dependent children bit in but it didn't make any difference and they wouldn't take DHs maintenance payments into account either.

Original poster
Besta · 05/03/2015 21:27

Thanks all

We pay income tax on our salary via PAYE and take dividends too.

I'm not a daft person but forms like these really confuse me!

OP posts:
boys3 · 05/03/2015 21:39

Besta last year at least each dependent child was worth just over £1k reduction on the income that the loan is calculated on if memory serves. Not enough to make much of a difference.

BackforGood · 06/03/2015 00:15

They don't take into account the fact you can be supporting 2, or 3 through University at the same time - they just look at your income, not what else you might need to do with it.

Notsoskinnyminny · 06/03/2015 07:29

You're right we've had 2 at uni for 4 of the last 5 years and we've got another 2 to go - I'll be working forever to rebuild my savings.

Notsoskinnyminny · 06/03/2015 07:30

2 years not 2 kids - we'd be in the poorhouse if that was the case Grin

Original poster
Besta · 08/03/2015 23:07

I think we might yet end up there! Have emailed the accountant. Such a faff for nothing really as I'm sure she won't get anything extra.

OP posts:
Pilgrimforever · 10/03/2015 12:45

I'm just doing DD1's forms now and have the same problem. We own a Ltd company and aren't self employed. We take salary and a dividend which is always classed as other income when we fill out forms but there is nowhere to put it on the SFE forms apart from in with our salary.
We have 4 other younger children so will that make much difference?
Also do we have to put our tax credit down or is that not taken into consideration or will SFE find that when they look at our application?

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