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Original poster

Self Assessment: Student Loan / child benefit

37 replies

Coached · 11/01/2019 14:33

I've just part completed my self assessment and it is calculating that I owe money (£762) for the tax year 2017-18.

But I'm confused as to why.

My SA is really straight forward - I'm PAYE and everything is taxed through payroll of the Company I work for (I completed an SA because I used to run a business and once you complete one, you end up doing one every year).

In theory, as I'm PAYE, I submit my earnings and literally that's it.

I've ticked yes to being over £50k earner and in receipt of child benefit, and declared my student loan payments for that tax year.

So why would it say I haven't made enough tax?

Could it be the receipt of child benefit and now being over a £50k earner? Or could it be the Student loan?

I have the breakdown if that helps? If the Student loan is deducted via PAYE, do I mention that? It seems like I'm penalised for the Student Loan.

OP posts:
dementedpixie · 11/01/2019 14:53

If you earn more than £50k and claim child benefit then you will be due to pay some of it back (A proportion is paid back between £50 and £60k with it all being paid back at £60k)

Original poster
Coached · 11/01/2019 15:04

Thanks @dementedpixie I think you're right but something is linked to the Student loan too.

I played about with the figures and put my SL to £0 and it bumped the tax due up to £2k+.

So I've double checked the SL figure and actually changed the figure of my student loan slightly as the question specifically asks what was paid via the employer and the figure I put in originally was the full amount for the year, not the PAYE figure (I'd paid some off additional direct to SLC).

By changing that it has now said I owe £1,260 Shock

The child benefit of £82.60 a month, totals £993.60 a year, so still not the same amount as the tax owed so I'm utterly confused by it all.

Do I need to stop receiving this child benefit? It is something I had when I was on mat leave and then I've jumped in salary a lot in the last 5 years and now think it is daft to still have it (especially if I'm getting it taken back off me!)

Totally confused by it all and gutted Sad

OP posts:
Original poster
Coached · 11/01/2019 15:10

Also, I'm only just stepping in to the £50k+

OP posts:
Lazypuppy · 11/01/2019 15:32

If you earn over £50k you have to pay back some/all of it. Google it and it should help explain.

And i thought you only had to do a SA if you have income that hasn't been taxed

dementedpixie · 11/01/2019 15:57

Everyone who earns over £50k and claims child benefit has to do self assessment too. The high income benefit charge is 1% for every £100 over £50k.

Original poster
Coached · 11/01/2019 16:28

So it must be something to do with student loans then. If it is only 1% per hundred pound, it should be £300 I owe, but it isn’t. It £1260.

The student loans declaration seems to mess it up.

OP posts:
dementedpixie · 11/01/2019 16:30

What exactly do you need to declare re student loans

dementedpixie · 11/01/2019 16:32

Arw you taking figures from your p60?

Original poster
Coached · 11/01/2019 17:07

Yep, taking figures from p60
There is a question which specifically asks how much student loan I paid back that year via employer

OP posts:
Original poster
Coached · 11/01/2019 17:21

Sorry been on a drop off for DC

The question is

“Student loan repayment deducted by your employer. Enter the amount deducted:”

I enter £1674

It churns our that I owe £1260

We’ve tried it by entering £0. Which churns out I owe £2.8k !

Just don’t get it.

OP posts:
Chasingsquirrels · 11/01/2019 17:26

Would need exact figures to check.
P60 - Gross, PAYE & Student Loan.
Student loan repaid separately.
Child benefit received.
(And anything else but it doesn't seem like you have anything else?).
But it is probably a combination of child benefit clawback, student loan and potentially a coding error - is anything being collected via your coding? What is the tax code on your P60? Is there any tax from previous years that has been coded and is therefore being collected in the PAYE?

Ta1kinPeace · 11/01/2019 18:23

@coached
If you want to PM me the numbers, I'm happy to check it in my big Tax software .....

Badbadbunny · 11/01/2019 19:39

The SA return/calculation won't take into effect any voluntary SL payments you made directly to the SLC. So they're extra to what you're actually required to pay. Your SL liability in the SA return will be what is due as calculated per the SA return less what you paid as per the P60. So your SLC will end up getting more than is due because you've made voluntary (extra) payments you didn't need to.

Ta1kinPeace · 11/01/2019 20:06

am working on OPs numbers ...
they are odd but my wonderful TaxCalc will sort it

Original poster
Coached · 11/01/2019 20:49

@Badbadbunny thanks, that makes sense.

I’ve got TiP looking into it for me off line 😉 I owe her a huge glass of wine 🍷

OP posts:
Ta1kinPeace · 11/01/2019 20:52

FWIW BadBad uses very similar software to me !!!

Chasingsquirrels · 11/01/2019 21:33

OP has also I'd me the no's earlier but I haven't had a chance to look at them yet and probably won't this evening.
If you get there before I do Talkin I'd appreciate a heads up on here so I don't duplicate.

Ta1kinPeace · 11/01/2019 21:44

chasing - as with all of these cases (and we've had several this season)
I try to post the answer so we all learn from it :-)

RandomMess · 11/01/2019 21:46

Probably not helpful as you're now a higher earner which impacts on your CB but a few years after ceasing being self employed and being full PAYE employee the IR agreed that I no longer had to file a return anymore, happy days!!!!

Alarae · 11/01/2019 22:06

While I don't own fancy software I can certainly reconcile it by hand if needs be. Only takes a few minutes normally to pinpoint the issue.

Unfortunately HMRC don't take into account extra payments to SLC, so if you have actually overpaid you need to pay the extra to HMRC and then reclaim it back from SLC.

Also if you claim child benefit, should the figure not be 1,076.40?

Alarae · 11/01/2019 22:19

Actually OP, on a random thought I think the majority of your payment due is underpaid student loan deductions from your employer.

Assuming a salary of 51k, you should have paid around 2.9k in student loan deductions. You say your employer only deducted around 1,600, so that makes most of your difference up.

Obviously it won't be the full answer as part of it will be child benefit clawback and it looks like you may have a slight overpayment of tax somewhere but that looks like your issue on the face of it.

Original poster
Coached · 12/01/2019 05:07

Probably not helpful as you're now a higher earner which impacts on your CB but a few years after ceasing being self employed and being full PAYE employee the IR agreed that I no longer had to file a return anymore, happy days!!!!

I would definitely like to do this

Assuming a salary of 51k, you should have paid around 2.9k in student loan deductions. You say your employer only deducted around 1,600, so that makes most of your difference up

This was mine and DH’s conclusion last night. It makes no sense why my payroll hasn’t deducted the right amount of SL in that year.

Would it make a difference though if my payrolling benefit in kind is included in the p60 figure? So my actual earning are not over £50k but my company car figure tips it over.... and it is included in the p60 figure... (I think)

OP posts:
Chasingsquirrels · 12/01/2019 08:18

@Ta1kinPeace I know you do, you are very helpful.

@Coached the student loan deductions just don't make sense.
Your PAYE is spot on for your salary and the prior year clawback.
But the student loan is under and you haven't got any child benefit clawback in your coding so that will be due too.

Original poster
Coached · 12/01/2019 08:51

@chasingsquirrels I'm convinced it is something to do with my payrolling BIK amounts (which I haven't given on here)

2017-18 these figures go through my monthly payroll
£597.60 (company car) = £7171.20 pa
£77.34 (PMI) = £928.08 pa

Total £8099.28 on top of my normal salary, which totals the P60 figure I gave (£53,693.35)

Does that help?

OP posts:
Original poster
Coached · 12/01/2019 08:53

Would the student loan figure be calculated on my actual salary (£45,594.07)?

OP posts:
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