Student Loans & Balancing Payments

Hello, As part of very first tax return, 2022/23, the Student Loans Company (SLC) received the necessary calculated amount directly from HMRC on January 31st 2024 as confirmed on the online statement that I have checked on my SLC account. However, it's my understanding that Student Loans are not included in the now ongoing Payments on Account of future tax returns -- but I'm also unsure if they are instead included in subsequent Balancing Payments expected at the end of each January. If not, then I'm confused as to how or where they fit into the picture at all despite seemingly being part of the total calculation presented to me upon submission of my latest return. Fictional example: My two payments on account will total 12000. This latest return's expected total is 14000. So I would owe 2000 as a balancing payment to bridge that difference in terms of tax at least. However, my student loans amount owed is 3000. My question then is: Are Student Loans eventually also factored into the Balancing Payment due by Jan 31st, bringing the total owed to 5000 (tax difference + student loans) or would I be expected to login to my SLC account and send them the above amount of 3000 as a proactive, separate payment? Thanks for your assistance.

Hi

Payments on account are advance payments towards your tax bill. Student loans are not tax, so are not part of of the payment on account process. You can see guidance here:

Understand your Self Assessment tax bill

For student loans to be collected through Self Assessment, they will be part of the balancing payment, but not the payments on account.

Thank you.

Hi there, Thanks for your reply. Once both of my payments on account (January 2024 has been paid and July is forthcoming) have been paid, my 2023-24 balancing payment will be £367 which I believe accounts for the tax margin to be bridged between this and last year's returns. However, the student loans figure included as part of the full calcuation in this latest return is £2146 but does not appear to be reflected in the balancing payment leftover figure (post-payments on account) which I would have taken to be 367 + 2146 for a total of £2513. I'm unsure if I'm misunderstanding the calculation breakdown or if there is a discrepancy here. Will the balancing payment figure update and become available for paying once I have paid the second 2023-24 POA this summer? Currently I am only being prompted to pay the July 2024 sum. Thanks again

Hi
The prime purpose of self assessment (SA) is the reporting and collection of income tax and capital gain tax.  However, a self assessment tax return is used as a convenient medium to collect other payments, such as class 2 and class 4 National Insurance Contributions (NIC) and student loan payments.  Payments on account are used to collect income and capital gains tax, not NIC or student loans, so they will not be included in the payments on account or balancing payment.  Payments of NIC and student loans you make through SA, are passed from SA to the appropriate departments records.

Hi there, Will everything (NIC 2, NIC 4, Student Loans) ultimately be listed as an expected payment within the 'Current Position' section of the SA page once the return has been fully processed by HMRC? As there seems to be some differing advice on what is and isn't part of the Balancing Payment (e.g. Admin 19 has said that Student Loans are part of this), the main thing of which I'd like to be sure is that one way or another I will definitely be prompted to pay everything that is expected from me -- I'm assuming 'Current Position', which is presently only displaying the forthcoming July Payment on Account as due, will be updated accordingly to include everything else ahead of January 31st 2025? Many thanks

Hi KSDZ91,
Yes, if Class 2/Class 4 NIC and student loan repayments are due this will be included in the balance due.
Once your 2023/24 Self Assessment is processed the balance due by 31 January 2025 will be updated. 
Thank you. 

Hi Admin, I require your help please. I was made redundant in November 23 and received redundancy pay on which Student Loan was not taken from. I am in the process of looking at my self-assessment and the breakdown shows the figure that (I assume) should have been taken from the aforementioned pay. Once paid to HMRC, will this be reflected in my Student Loan Balance? Many thanks Jamie

Hi. I have just completed my tax return for 23/24 and apparently I will have to pay £17,000 on my student loan. I only owe about £6,000 though. What do I do? I don't want to have to pay £17000 and wait for £11000 back. Thanks.

[Display name amended - Admin]

Hi Mark

Please refer to Repaying your student loan

Thanks

Hi Jamie,

Yes, once paid it will be reflected in your student loan balance. 

Thank you.