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The Income Tax Self Assessment calculates the maximum amount that can be repaid by an individual if they have an outstanding student loan. Currently this amount is 9% of income over £15,000. The full amount calculated MUST be included on the SA100. If a lower figure is entered HMRC may open an enquiry into the return.
 

The result, particularly for those nearing full repayment of their student loan, may be an overpayment of the student loan. HMRC’s process is to pay the monies calculated to the Students Loan Company (SLC). The SLC then reconcile the loan account and repay any overpayment to HMRC. HMRC include the receipt in the self assessment account but do not inform the tax payer. The responsibility for requesting the repayment remains with the Tax Payer.

 The Tax Payer can ask HMRC for a specific amount from collection to be “stood over” until the reconciliation is completed. Interest and surcharges may be payable if the amount stood over subsequently becomes payable. If you believe that you are overpaying your student loan you will need to contact HMRC to discuss.

Alternatively you can contact Foremans LLP on 01244 625500 for further advice and assistance.