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Student loan repaid - how to adjust

Student loan repaid - how to adjust

Client had small amount outstanding last year (2010/11).

This year loan repayment calculation £10k.

Who do we contact to have the payment adjusted. I understand the SAR is submitted as is which clearly shows excessive liability.


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17th Jan 2013 13:19

we've had clients with the same problem


there is no way to adjust the liability on the SAR, the only thing that can be done is for the client to submit the return with an incorrect student loan liability, pay the liability and then have the overpayment refunded by student loans company.......typically 6 - 9 months later

HMRC wont enter into any discussion on the student loan balance and conciede that you have to submit a return which is incorrect



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By vince8
17th Jan 2013 13:55

See attached ref overpayments


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17th Jan 2013 16:41


If you don't trust the SLC to tell HMRC about the final balance, there is another way.

If you don't tick the box it doesn't get collected.

Pay student loans company direct, then by the time you get the "hang on you have a student loan" letter its all paid off..........and you send that letter to HMRC and the original return stands. That way your client is in control of the payments.

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17th Jan 2013 17:01

I had this issue doing my sister's tax return last year.  Her student loan had been paid off in full during the tax year from her PAYE income.  As she does some freelance work the SAR wanted additional payments.

When I spoke to HMRC the response was - 'Ah - we get this sometimes.  Student Loan company haven't sent us their records yet so we can't tell who has paid their loans off'.

What we did was to pay the amount due less the student loan amount 'due'.  We put a note in the other information area of the SAR and followed it with another call to explain.

I forget how long it took but it was all resolved fairly quickly and simply.

This may not be the by the book way to do it but it worked for us.  I can't see a way to justify advising someone to overpay their Student Loans repayment by £000s and then go through months of headaches to get it back all because HMRC and SLC can't get their act together.

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