Student loan repaid during tax year incurs self assessment charge

Hello all, Could I ask a quick question? I am filling in my 2022/23 self assessment tax return. As I was 12 months from replaying the balance on the advice of SLC company I repaid the remainder of the loan by direct debit directly to the SLC between May 22 and March 23 and therefore no deductions were made by my employer via PAYE. My last employer deduction fell in the previous tax year (February 2022). Do I still need to declare the amount of study loan repaid on my self assessment? Best wishes, 

Hi Matthew Burgess,
No, you don't declare this in your tax return.
Thank you. 

Hello, another similar question. I'm filling in my 22/23 self assessment tax return. I paid off my student loan in full in August 2023 by a one-off payment. Should I select 'no' for the question "Our records show that you have an Income Contingent Student Loan for which repayment began before 6 April 2023. Is this correct?". Otherwise it calculates that I owe an addition £465 for my student loan, which I don't owe as my student loan has a zero balance.

I repaid my student loan in full in August 2023. I have just completed my self assessment tax return for year 22/23 and the tax calculation includes £541 owed towards my student loan. Can an adjustment be made for this to take it off my tax owed? Do I need to pay the tax in full and then reclaim? Whichever option is correct, how do I do this? Many thanks

Hi, I have a similar question to a number of people here, although slightly different circumstances. Am currently filling in 22/23 return, switched from PAYE to DD payments on my student loan as getting close to paying off. The last PAYE payment was Oct 22 and with lag in switch to DD first DD payment was in Feb 23. In the final calculation I have had additional charge add that is significant over the amount remaining as have sustained DD payments monthly from Feb 23 onwards. Why has this charge been added and how do I get it removed as only have 3 DD payments left until loan is settle. Any advice appreciated. Thanks, Tom

Hi I have a similar question re student loan. Currently I am completing self assessment tax return for 2022/23. My student loan throughout the year have been deducted through PAYE system. As per P60, I have paid a total of 4666 towards student loan, which seems to be the right amount based on my income from two jobs totalling to 100150. However, when I put information on self assessment, it brings £1100 due on student loan, which isn’t right. Can you help please?

Hi clare_a,
Your answer should be 'No'
Thank you. 

Hi tkh22,
If the loan is settled you need to change the answer to No, you don't have a student loan.
Thank you. 

 

Hi, I was about to submit my return and realised this student loan question was applicable to me somewhat... "Our records show that you have an Income Contingent Student Loan for which repayment began before 6 April 2023" Now based on above and past questions and answers I'm going to presume I select 'No' but wanted to double check. My situation is that I received Income Contingent Student Loan during the period but only just - I settled my loan in April 2022 (my last loan repayment date was covered 3rd-30th April salary). If I select 'Yes' I end up having a much large tax return calculation even after entering the amount deducted in that period by employer. Please can you confirm I do not need to select 'Yes' to this question but 'No'. This is the approach I intend to take.

Hi Ybk Kh,

The total charge due will not solely be on the student loan as the final figure is for tax too. From your figures, your income is over £100,000 which means full personal allowances are not due. You may need to submit the return and then contact us direct so that we can see all the figures submitted to clarify in full.

Thank you.

Hi GaryH,
You would need to select 'NO'
Thank you. 

Hello HMRC Admin! Super useful thread. Thanks for all the good info. I have a slightly different scenario. SLC asked me to move from PAYE repayments to direct debit based repayments based on when the outstanding balance will likely be settled to prevent overpayment. Would this no longer be income contingent, given it is now fixed repayment value not based my income? So in this scenario, would I select 'No' on my self assessment in answer to "Our records show that you have an Income Contingent Student Loan for which repayment began before 6 April 2023. Is this correct?"~ Many thanks,

Hi Phil Palmer,
Please refer to:
Repaying your student loan
Thank you. 
 

I'm in the same situation as Phil Palmer. I switched from PAYE to DD repayment during the 23/24 tax year at SLC's request. There was a couple of months between the PAYE stopping and the DD starting so the calculation says I owe money, presumably for those months. However, I have a DD in place to clear the outstanding balance this year with SLC. The reason for switching to DD was to avoid over repayment but it seems if I pay the amount calculated by self assessment plus the agreed DD plan then I will end up over paying anyway. Can I tick 'no' for an income contingent loan? HMRC 25 I don't believe that link is relevant to our situation.

Also in the same situation as Phil Palmer and tobassist. If you fill in the tax return it excludes all the payments you made via Direct Debit so expects quite a hefty tax payment which would then result in an overpayment... It would be good just to get an explanation of the process if we do tick "Yes" to the Income Contingent Loan, do HMRC then speak to SLC and take the Direct Debit payments into account before actually taking payment or adjusting Tax Codes? Would it be okay to select "No" due to it no longer being Income Contingent (as now fixed repayment) and then explain the situation on the additional information on the tax return thus preventing any additional deductions being made?

The HMRC team replied to me here if this helps anyone else: https://community.hmrc.gov.uk/customerforums/sa/4fb91979-b303-ef11-a81c-002248c8dbba They confirmed you should say you do not have an income contingent loan.

Hi tobassist,
You will need to contact us direct for this to be confirmed as Student Loan Company will need to access your record.
Pease contact HMRC here telephon and ask for the Student Loan team.
Income Tax: general enquiries
Thank you. 
 

Hi Torpi,
Yes, you can do this.
The return is checked by Student Loan Company and they would contact you if any changes are due.
Thank you. 



 

Hello, can I confirm my understanding of other posts an replies is correct: if I have paid off my student loan in full, I click "NO" to thr question "Student Loans Company that your repayment of an Income Contingent Loan was due before 6 April 2023"? Otherwise the system does not allow me to note that I only owed PART of the 22/23 student loan annual amount for plan 1 and overcharges me. It also does not have a section for direct debit contributions vs employer contributions.

Hi,
You need to say no if the loan is now cleared. The system can only account for payments taken from your PAYE employment and not anything paid direct by you.
Thank you.