Self Assessment: Student Loan / child benefit

[Coached]

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.

Also, on my P60 at the bottom, there is a SL deduction figure of £558

I know that I paid £1674 via payroll + £196 directly

No idea why the SL figure on P60 is so low.

Yes, student loan would be based on gross less payrolled benefits - ie your gross salary.
And at those figures the sum of the 2 student loan amounts you mention would make sense, but neither individually.

You haven't changed employment so the P60 is showing this and previous employment?

I don't understand the discrepancy between the student loan you've said was deducted, and that shown on your P60.

So technically there is a change of employment but only on paper (the company I work for split and we separated away from them but continued employment, new payroll provider / PAYE etc) so I have a P45 from them and a P60 but both the figures link together. I recall at one point HMRC thought I earned double of my earnings, and I had to log online and correct it (somehow the computer had added the two 'earnings' of the the previous PAYE and the new PAYE together). There were a few of us who it affected but soon got it rectified.

Your employer still hasn't taken the right student loan deductions, even ignoring your benefits. On your actual salary, I would expect deductions of £2,503 for the year.

The non-cash benefits should not be counted when calculating student loans, as it should be assessed on your income liable to Class 1 NIC. Unfortunately most software will automatically calculate the SL due on taxable income, so this is why its coming out with such a high figure.

You can argue with SLC (not HMRC, you will have to pay them regardless) to have them repaid as they should not have been. Alternatively, you can just see it as paying it off a bit sooner.

If you Google 'student loan deductions Tolley' the first result is a link to a guidance note. They explain the deduction process quite well there.

Maybe the £558 on the P60 (from my existing employer) is only part of the SL deductions (from Oct 17 to Mar 18) with previous deduction not taken in to account before the split? (Apr 17 to Sep 17 with other PAYE)

Would that make sense?

this post is now so revealing, I may need to get it deleted!!

@Alarae
You can argue with SLC (not HMRC, you will have to pay them regardless) to have them repaid as they should not have been. Alternatively, you can just see it as paying it off a bit sooner.

The issue I have here is that my SL is completed paid off. I finished it last August - got the statement, haven't over paid (I didn't think) so not sure what you mean by this.

What does the other P60 say? You need to add the 2 figures together as your current P60 will only show deductions from the current employer

You’ll need to say if you think your Student Loan might be fully repaid within the next 2 years.

You’ll also need details of any amounts already deducted through your employment.

If you’ve had more than one job in the year, you’ll need to add up the repayments shown on all of your payslips, rather than just those of the most recent job. YourP60won’t show the amounts deducted by a previous employer.

If you don’t have access to some or all of your payslips orP45s, you can contact your:

previous employer, if you’ve changed jobs and don’t have your P45
current employer, if you’re missing a payslip or P60

Sorry, meant that if you paid the extra via your tax return you can ask SLC to refund it to you.

This situation did actually happen to one of my colleagues who paid off their loan mid-year but were asked to make additional contributions via their return. They called up HMRC about it and they actually advised them not to put the student loan on the tax return at all.

Now that is technically not correct reporting, but it was what they were advised.

In your situation, I would give HMRC a call and ask them about it. They are not the most helpful bunch, but if they tell you not to include it to prevent overpayment, then at least you have it on record.

AFAIK, my colleague never got contacted by HMRC about the way he submitted his return either, even though his p60 would have shown SL contributions.

If the student loan has been paid off at the time the tax return is completed, should you be ticking the box that you are liable to make student loan contributions?

Because if its been paid off, surely you no longer?

Just had another look at the form, and yes strictly you should.

I would second ringing hmrc as, assuming it is the student loan that is causing the issue, it would only be reclaimed.