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Posted Fri, 26 Apr 2024 09:58:04 GMT by Torpi
Hi, I am within 2 years of paying off my Plan 1 Student Loan and I'm very confused about self-assessment. I have made payments within the 23/24 year via PAYE, these stopped in December and I was moved over to the Direct Debit scheme to avoid overpayments. When filling in my self assessment return, do I select "No" for "Did you receive notification from Student Loans Company that repayment of an Income Contingent Student Loan began before 6 April 2024?" due to the fact that I am now repaying by direct debit and I am therefore no longer on an Income Contingent loan? If I select "Yes", I have noticed that the tax return expects a large repayment as it isn't taking into account the direct debit repayments that have been made. Any help would be great. Thanks
Posted Wed, 01 May 2024 11:12:31 GMT by HMRC Admin 25 Response
Hi Torpi,
As you have been put on a direct debit scheme to avoid overpayments, HMRC no longer collect any student loan from either Self assessment or via PAYE as you are now paying directly to Student Loan Company.
Therefore when completing the 23/24 Self Assessment Tax Return you should click 'No' to the student loan question or you will be incorrectly charged student loan by HMRC.
Thank you. 
 

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