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Posted Wed, 29 May 2024 10:42:24 GMT by BomT
Hi there, I have two PAYE employments which I repay my student loan through individually. I am aware that usually in this scenario I am not obligated to pay 9% (plan 1) over the threshold for my combined income, just my individual incomes on a per-employment basis. (as per this page here https://www.gov.uk/repaying-your-student-loan/what-you-pay) However, having filled out my self assessment tax return, it has combined both my employments as well as my self assessment gross income (~£1600). This has then calculated that I need to pay 9% over the threshold of ALL my income (minus existing PAYE deductions) towards my student loan repayments, meaning I will be paying just under £2000 in student loan repayments alone, however if I was not self employed I would be paying just under £300. This has therefore meant that the entirety of my profit from self assessment is going solely towards paying off my student loan. Its even more frustrating as if I had earnt £600 less throughout the year in self assessment then I wouldnt even need to submit a tax return and I wouldn't need to pay 5x as much student loan. Is there any way around this/am I missing something? Or do I need to pay the higher student loan repayment? Thanks.
Posted Tue, 04 Jun 2024 07:32:21 GMT by HMRC Admin 19
Hi,

The way your student loans deductions are calculated through Self Assessment, by applying the threshold to your combined income, is correct. The same method would be applied to taxpayers with multiple PAYE employments but no self employment, if it were practical for employers to implement it.

You will not pay back more student loans than is ultimately due to be repaid, though. 

Thank you.

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