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!
- Expenses allowable against income from lodger 185 4
- Retrospective Credit Notes 38 2
- Can loss derived in first year of letting out be carried forward to be set off rental in next year? 472 9
- Scams are not always obvious 825 24
- Relationship between amortisation and distributable profits 33 1
- Google contacts sharing within our domain 244 7
- Restructuring company and Form 42 98 5
- Little PPR calc question 72 1
- Personal allowance 487 11
- Limited Companies, Directors Employer Registration P11D 175 6
- Taxation of rental income 292 6
- Market Value/Connected Persons 230 9
- Overseas company and VAT 52 1
- SAGE - Filtering Inactive Suppliers/Customers 146 2
- Workshops centred around Xero 484 12
- RTI, no payroll but BIK 187 1
- P60 from HMRC Basic Paye Tools 199 2
- VAT on long lease in comercial property thathas opted to Tax 116 3
- Related party disclosures 196 3
- Input vat on my fees after deregistration 196 2
- New Fangled Penalties 1,045
- Moving away from CCH software 911
- Recruitment agencies 534
- QROP pension input amounts 414
- write off loan or loan to equity swap or both 366
- Deemed Employment Payment 349
- HMRC BENCHMARK EXPENSES 315
- Unused Losses and Post Cessation Receipts 302
- fraud 228
- EIS relief on transferring shares to spouse 227