Student loan repaid during tax year incurs self assessment charge

Hello, I'm in the process of completing my self assessment for 2022 - 2023. During that year I repaid my student loan via PAYE. When answering the question "Did you receive notification from Student Loans Company that repayment of an Income Contingent Student Loan began before 6 April 2023?" I select "Yes" and later in the form add how much student loan I've repaid through PAYE. When I get my final tax calculate there's a section added; "Plus student loan repayments" which is in the region of around £5000. Is there a way to indicate that I've already repaid my student loan in full so that I don't incur a charge for it? Many thanks

Interestingly, answering "No" to the "Did you receive notification from Student Loans Company..." question removes the charge from the final calculation. The final total looks correct, should I submit my return omitting the student loan? I'm not sure if that sounds right...

Hi,

If you have already paid it in full then you will select no to the question do you have a student loan.

Thank you.

Hi Exastorm,

On the basis of the information you have provided, you have completed your tax return correctly.
More information about repaying student loans via Self Assessment is provided here:                              
Tell HMRC about a student or postgraduate loan in your tax return

Thank you.

Many thanks both for your replies. Could I just clarify, when you say that I've completed my tax return correctly, was the correct answer to select "no" for the "Did you receive notification from Student Loans Company..." question? The linked article doesn't cover situations where student loans were fully repaid, and the response from Admin 20 was a bit unclear if they were responding to selecting "Yes" for the student loans opening question post, or the subsequent "No" from Admin 19. Many thanks

Hi Exastorm,

You are correct please answer 'NO' if it has already been paid off.

Thank you. 

Hello, I am in a similar but non-identical situation to Exastorm. I intend to settle the balance of my student loan account before submission of my 22-23 return. This will not have been made in the 22-23 tax year but in the 23-24 tax year before the January 31 2024 deadline for 22-23 tax year return submission. I will shortly be completing my 22-23 return through self assessment. If I do not click no to the aforementioned question, I too will be overcharged to the tune of a few thousand pounds. Will it be OK if I then do the following: 1. settle the balance. 2. select no to the aforementioned did you receive notification... question on my 22-23 return, if I submit this after settling the account. I anticipate about a month between settlement and return submission. Thank you.

Hi foxyfoxglove,
Strictly speaking, as the return is for 22/23 income and the loan is not settled.
You should still be ticking the box.
Any settlement you then make should take into account the additional tax due from 22/23.
Thank you. 

Hello, Similar but different situation once again. I'm repaying my student loan via DD. There's approx £400 balance currently and the final repayment will be made in April 24. On my self-assessment for 22-23, £1,725 has been added as student loans repayment - far higher than the balance owed. How do I get this amended? I don't want to pay it and have to wait for it to be refunded. Thank you.

Hi ceejay197,
Once you submit the Self Assessment the student loan company would advise HMRC of the correct balance and the calculation will updated accordingly. 
Thank you.

Thank you. Do I need to contact HMRC and / or SLC, or will this happen automatically?

Hi,

You will need to contact the Student Loans Company once you have submitted the return.

Thank you.

Hello, I submitted my tax return and contacted the SLC as advised. They say that HMRC should not be expecting any repayments via self-assessment as a stop notification was issued in 2022 (this stopped deductions via payroll and I'm repaying via DD). They say they do not need to advise you of the correct balance as they have already advised you no repayment needs to be collected via self-assessment. They said I need to contact HMRC, but I've spent an hour and a half on the phone and no one has picked up. I do not want to pay £1700 that I do not owe. Please help.

Afternoon. Similar situation. I overpaid (-£280 balance) my student loan as a mix of voluntary payment and PAYE (the last quote by employer's mistake) last month. Now, when calculating my self-assessment, even when I have already overpaid the postgraduate loan, if I tick "yes" to the related question, it overcharges me with around £5000. How should I proceed? Should I just tick "no" or is there any other way to indicate that I've already repaid my student loan in full so that I don't incur a charge for it? Thank you very much for your help.

Hi ceejay197,
You can amend your return online.
At the question on student loans, change your answer from yes to no. this will cancel the charge.
Thank you. 

HMRC Admin 25, when you mentioned "At the question on student loans, change your answer from yes to no. this will cancel the charge", are you answering to my query, or is not related to my post? Please, clarify. Thanks.

Hi Cesar Ruiz

You need to change the answer to 'no' so that nothing is charged.

Thank you

Hi Cesar Ruiz
Yes this was the anwer to your query so that it doesnt add on the extra charge when you have already repaid the loan.

HMRC Aadmin 5 and 10, Thank you very much for your clairification. As I have overpaid the postgraduate loan, I wonder if there alis any chance to get the refund through the self-assessment? How it is now, I still have to pay a higher amoint than my post graduate loan credit (-£280) so it would mean paying less at the self -assessment.

Hi Cesar Ruiz

You will need to contact student loans to discuss this on 0300 100 0611.

Thank you