Student Loan Repayments
My client is employed under PAYE with no additional income outside of this employment. He had the same employer throughout 2011/12.
The employer has deducted student loan repayments for part of the year, however, as my client paid off his student loan part way through 2011/12 and following the relevant notification from the Student Loans Company and in turn HMRC, the employer ceased deductions in October 2011.
We now come to complete the 2011/12 tax return and, quite correctly we have ticked the box showing that Student Loan Repayments are due and entered the employer deductions made from April - October.
As there is no box to show that the loan was repaid part way through the year, the calculation is calculating the loan repayments based on full years income and therefore showing a balancing payment for my client to make. This is clearly incorrect as the Student Loan was repaid in October 2011.
Is there anyway to avoid this balancing payment or is it a case that he must overpay and then reclaim from the Student Loans Company? In this case my client had a significant bonus after October 2011 and the balancing payment to make is nearly £10,000 which, understandably he does not feel he should have to pay only to reclaim a few months (or possibly longer) later once the Student Loans Company have the information from HMRC!
- Errors in prior year accounts 832 22
- Have I dropped a major clanger? 445 9
- What is going on with VAT applications?? 1,976 39
- Director forgot to take salary for 2013/2014 2,323 17
- Do I need to report this to SOCA 2,594 23
- VAT & capitalising 119 3
- Final year's accounts 145 1
- Do I Need A Balance Sheet? 265 5
- Self Assessment Tax Return Penalties 293 5
- Entrepreneurs relief available? 309 7
- Filing FPS early with moneysoft 237 15
- Have we a distribution when we reduced our capital but it hadn't been registered? & tax implications in winding up 136 2
- What are options for non CA firm 1,974 36
- Invoice Help 247 7
- Summer evenings and ponderings of capital allowances 179 3
- Employee overpaid who has left 250 4
- Limited Company keeping receipts 236 3
- Sorry ignore me 907 24
- Donaldson v HMRC case being heard tomorrow! 588 5
- Free Shares ? 251 2
- Proposed Amendments to IAS 1 625
- Property exchange - 8-year legal delay following fall-out 532
- SAGE Payroll Data for Import to MS Dynamics AX 294
- Cancelled 285
- Cancelled 245
- Have you staged yet for auto enrolment? 193
- Sage Report Designer - Nominal Activity in Currency 191
- Probiz 178
- Married woman dies owning marital home 168
- What's the market like for temps? 166