I have a question I’ve been trying to answer now for a couple of weeks, maybe you guys can help. I’ve googled and read answers and asked at work but I’m still none the wiser.
Basically I’m trying figure out whether it’s worth paying off my student loan, but my question is about whether the loan repayments are before or after tax. It comes off from PAYEE so it’s deducted from your salary before you get your pay check but I can’t quite figure out how it works. Someone suggested I look at the gross income vs taxable income on my pay check, so I did that this month and I still have no idea what’s going on. 🤣
My question is this: say I was paying back £100 a month in loan repayments. If I pay off my loan will that translate into £100 a month extra in my pay check? If the payment is after tax then it will do, but if it’s before tax then the amount that actually goes into my pocket will be quite a bit less.
It’s not a huge deal but just finding it hard to get an answer.