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  • Student loan Tax question

    I have been filling in a Self Assesment for years now, because I rent a flat out. For the last few years I've also been paying off a student loan via my PAYE. In April 2022, I only had a balance of £53 to pay. This would have been paid off by May 2022. Anyway in my tax calculation for 2022-2023 I saw the tax seemed very high, which I put down to the changes in what you can offset against a rental property. Anyway I submitted my return and paid the tax I owed. I went back though and saw a line where it had added "plus Student loan" of an amount over £3000. This seems to be then added on as money I owe HMRC. I think this is because there is a box ticked which I ticket yes to, but put "0" in for any Student loan payments made. I've since gone back in and deleted this section, explaining that my student loan is paid off, this has made my tax much lower and seemingly better. I rang Student Loans company and they told me that I of course had paid it all. They are writing a letter to explain this. Also this year I got sa tax refund for the tax year 2021-2022, which I could not understand, but now looking back it seems that again a large amount of Student loan "plus" was added in the calculation. Does HMRC need to be told that the loan is paid off? If they are not told do they assume that loan money is owed back? It seems to be very unclear and doesn't make sense. Please advise.
  • RE: Student loan finished

    I have had this same problem and now this seems to be why I am paying so much tax. My student loan was all paid off by April 2022, but my self assesment for 2022-2023 shows a large sum of "plus 3000 for Student loans." This then makes the tax bill go really high. It's really not explained well at all. I think this is why i paid so much more in the previous tax year and then ended up getting as refund. This year I have now had a tax code change which is a "K" code which is then trying to tax me over £2000 for not paying enough tax in this year. It's so confusing!