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Workaround for botched HMRC student loan repayment calculations


Posted on: 19-09-2024

Workaround for botched HMRC student loan repayment calculations –

HMRC systems cannot differentiate between certain types of income which could lead to an overpayment of student loan deductions. What’s the solution?

Workaround for botched HMRC student loan repayment calculations - Dunhams News Blogs

If you make student loan repayments and you’re also within the self-assessment regime, you’ll be aware that any student loan repayments due on additional (typically non-PAYE) income are calculated and collected via your tax return. This would ordinarily be straightforward, but HMRC has confirmed that, despite student loan deductions not being due on benefits-in-kind, its systems are incorrectly including such income in the calculations.

If you want more Help with Personal Tax

Workaround for botched HMRC student loan repayment calculations - Dunhams News Blogs

This means that affected individuals will end up paying higher student loan payments than is necessary. Therefore, if you’re in self-assessment and you have payrolled benefits in kind, such as a company car or private medical insurance, you will need to follow HMRC’s guidance to ensure the student loans figure is calculated correctly. The current workaround is in place until shortcomings in HMRC systems can be addressed.

Workaround for botched HMRC student loan repayment calculations

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