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  • RE: Student Loan Repayment and Pension Contributions

    Hi HMRC Admins, My employer has stated that my SLC repayment is calculated on my (gross - salary sacrifice) * 0.09%. This means that my repayment to SLC is below what i expected the 9% value to be. I have challenged them on this and they have pointed me to this thread. It seems this means that if I choose to pay more into my pension I can reduce my SLC repayment level as a by product as that further reduces the gross amount they calculate the 9% on. This doesn't feel right to me, and means that I will take longer to pay back the remainder of my loan if I increase my pension etc. I consulted with the SLC and they said it should be monthly gross @ 9% above threshold however my employer asserts its (gross - salary sacrifice) to arrive at a reduced gross for the 9%. Clearly there are conflicting perspectives here so would you please concretely confirm what the correct situation is here please. If my employer is correct then fine, on the flip side I wouldn't mind as it would mean the loan is paid off quicker and less interest is accrued. Thanks