Student Loan in SA

The 'unpleasant client' thread pt2

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Good monring all, I posted last week about the unpleseant client. I have to say thank you all for your responses - very much taken on board and agree with the consensus that it is a learning curve and I plan to disengage with the client post-submission of SA. I do enjoy this forum in that sometimes it is a helpful place despite sometimes the odd 1 or 2 coming across as a 'smart-a#@e'!

Situation is that client has P60's and P45's, over £100k earner. All P60's and P45's state NIL SL deductions. I requested payslips and SOME have SL deductiuons, some do not. I have asked client today to see SL balance as at today, if possible Client confirmed that has been repaying for around 5 years now.

The dates don't stack up in that the NIL SL deduction P45, is BEFORE the deduction one, so I am thinking it has not been fully repaid. The amounts dedcuted are relatively insignicant on what a SL would be also, but to reiterate I have asked for current balance for fullness.

My question is that - if client still has some SL outstanding, am I to tick the box on the SA stating that client wants to pay the total amount due (9% over threshold for Plan 2)? HMRC state that if individual was paying before start of tax year then the box is to be ticked - which client was.

Thank you for your help!

Replies (5)

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By Matrix
28th Jan 2024 10:23

Yes the forum is great. Tick the box and enter deductions already made. If the client overpays then up to him/HMRC/SLA to sort out.

At least the return will be correct. No point spending your Sunday (or any day) trying to work out what should have happened and an up to date balance will not change the obligation to tick the box. Have you seen the recent discussion on this?

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Replying to Matrix:
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By AA90
28th Jan 2024 10:32

Hi, thank you. You are right - it is what it is!

Yes, I did re-read the thread however believed it to be 'too far down' on the Any Answers list to create any responses!

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By rmillaree
28th Jan 2024 13:01

All P60's and P45's state NIL SL deductions.

unless i am missing something student loan dedudctions never show up on p45's - its not so much misisng just not deemed relevant for p45's very annoyingly - totals should be on p60

Note if you need s loan figures and they are not shown on p45 yoiu can ring hmrc and check totals - any advisor who says no can do is wrong - i manged to get figures tis week for client albeit i was wrongly told at first no can do - miraculously that hmrc officer rang me back the next morning to say they had double checked with manager and theior advise was wrong and they gave me totals.

if thye owe s loan you have to tick the box end of - just remember if bil is more than needed to settle student loan you can ring hmrc post submision to request s loan elementt is reduced to amount needed to clear loan - there never needs to be sa liability when s loan is cleared.

i dont know for sure if hmrc correct if you underdstate s loan amounts deducted from pay ? i wouldnt preume they do although i wouldnt preume they dont - all i do know is that if you miss s loan tick they will amend retun for sure.

As matrix says main thig is to get return in with correct incoem details - if amendment is needed ref s loan not the end of the world

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By FactChecker
28th Jan 2024 13:09

"The dates don't stack up in that the NIL SL deduction P45, is BEFORE the deduction one, so I am thinking it has not been fully repaid."

It sounds like client has had multiple employments (possibly some overlapping) in the course of the tax year, so you're setting yourself a difficult (potentially impossible) task if you try to resolve the state of their SLC account - which as Matrix says is further than you need to go in order to correctly complete the return.

FWIW a P45 doesn't show SL deduction values - it shows whether the employer 'operated SL deductions' which (assuming they answered this correctly) will be driven by ... whether or not they were in receipt of an SL1 from HMRC (or if the P45 from immediately previous employment shows that SL deductions were operated and the new employer has not received an SL2 from HMRC). Clear as mud?

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Replying to FactChecker:
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By FactChecker
28th Jan 2024 13:18

Having just seen that I've overlapped with rmillaree ... one further point.

It's not just annoying that the amounts don't appear on a P45 - you need to be very careful not to place too much trust on the value shown in a P60.
Because, unlike everything else on a P60, the amounts of SL and PGL deductions will be (as it says in a small font) "Student Loan deductions *in this employment*" - so this gives you no indication as to what may have been deducted by any other employer that year!

Basically this area is just one more example of why making HMRC the 'collection agent' for other parties (DWP for NICs, SLC here and of course the devolved authorities) is such a bad idea ... they move the numbers back & forth but take no responsibility for their accuracy.

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