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Posted Fri, 02 Jun 2023 09:04:10 GMT by Appt123
I have tried to ring everyday for the last week (after waiting again this morning for 40 minutes I was cut off) so as a last resort I am posting here. In summary, I fill out a self-assessment tax return due to property I have. For tax year 22-23, I paid student loan contributions (Plan 1) through my employer from April to October 2022, I was then abroad for 5 months and not working so did not pay anything further to Student Loan (via my employer or independently). I would like to now pay my student loan off due to the increased interest. In my self assessment for 22-23, I suspect because I've only paid student loan contributions from April to October 2022, it is saying I need to pay £271. If I go ahead and pay my student loan off directly with SLC is this going to have an impact on my self assessment? Will HMRC subsequently know that I have gone ahead and paid it off? I just want to be sure before I pay off the loan that I'm not going to have an issue with the self assessment, which understandably from the calculations thinks I need to pay more towards it via my self assessment with HMRC, but I would like to pay it off directly with Student Loan so I can stop paying the interest ASAP. Look forward to your response - thanks
Posted Tue, 06 Jun 2023 10:46:02 GMT by HMRC Admin 8
The 22/23 tax return will still look for the additional payment on the student loan as its based on the income earned in that year. if you pay it off, this falls into the 23/24 tax year so you would be best to complete the return before making the final payment.
Thank you.
Posted Tue, 06 Jun 2023 10:53:04 GMT by Appt123
Thank you - my outstanding loan balance is quite large. Could I pay a chunk of it directly with Student Loan and minus the amount of £271 that is showing as due on my Self Assessment tax return draft? Just as a way to minimise my interest
Posted Wed, 07 Jun 2023 14:09:50 GMT by HMRC Admin 17

The £271 will still need to be on the 22/23 tax return and any direct payment you make should take this into account  .

Thank you

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