My tax calculation said student loan contribution owed

bitsandpieces

I've done my tax self-assessment, and my calculation says I owe a student loan contribution (due to some self-employed work). However, I have paid an additional (voluntary) contribution into my student loan since doing the work - which is more than the contribution I'm now being asked for. Because of this contribution, Student Loan Company confirmed that I wouldn't need to pay any more for that year.

Does anyone know if the SLC were right, or if I will still need to pay the extra? Given the current rates on student loans, it's in my interests to leave the money in a bank account (rather than repay it) if that's within the rules.

Mikeyorks

HMRC documentation contradicts what you've been told :-

If you wish, you can make voluntary payments direct to the SLC. Payments of this nature will shorten the overall length of your loan and as a result reduce the amount of interest charged. However, there are some things a voluntary payment

will not do. A voluntary payment does

not affect the amount of any Student Loan repayments based on your income and deducted:

• by your employer; or
• those calculated through the SA process
described above.
You cannot choose to make voluntary payments instead of, or in place of, the above repayment methods. Voluntary payments

will always be in addition to any sums collected by HMRC.

It's just over 50% of the way down this file :-

http://www.hmrc.gov.uk/leaflets/csl1.pdf

...... but if you think there's a problem have a look further down at 'How to apply for an informal stand over order'. But I wouldn't go that route if avoidable ...... potentially messy as rationalising between HMRC and SLC is not something I'd underake lightly!!

bitsandpieces

Mikeyorks wrote: »

HMRC documentation contradicts what you've been told :-

It's just over 50% of the way down this file :-

http://www.hmrc.gov.uk/leaflets/csl1.pdf

...... but if you think there's a problem have a look further down at 'How to apply for an informal stand over order'. But I wouldn't go that route if avoidable ...... potentially messy as rationalising between HMRC and SLC is not something I'd underake lightly!!

[/LEFT]

Thanks for the link. Ironically, I'm just off the phone to HMRC re my self-assessment - they advised me that, because of the voluntary payment to SLC, I shouldn't need to make a payment following my tax return; they told me how to go about arranging this :rotfl:

Given that I'm following HMRC advice, hopefully I can just make clear what I'm doing - and if they want to ask for the extra payment/take back their advice, they can then make clear that they do want the money?