Student loan overpaid - but can't reclaim without a P60?

echelon_2

Hi, really need advice claiming back money I've overpaid on my student loan, for the tax period 2009/2010.

Details: Paid my student loan via PAYE at a rate of £104 per month, from April 2009 - October 2009, after which I left my workplace and returned to university. However, last statement states student loan balance was £153 as of March 2009 - this means I have overpaid by £574.

I only realised this recently (stupidly I assumed they'd stop taking money when the loan was paid off..), and wrote to the student loan company for an update of my balance and refund if appropriate. They have written back and said they haven't yet receieved my payments from HMRC, and that I need to send them my P60 for period 2009/2010.

Does this sound right to people? Why would they not yet recieved payments, when the last one would have been made in Oct09? Who has my money exactly??

Not sure how to proceed as I don't have a P60, as I wasn't employed in April 2010. Also my P45 does not show student loan contributions, and unfortunately I lost most of my old payslips during my last housemove. What can I do next - do I just have to wait for SLC and HMRC to communicate, and if so how long will this take?? Just left uni and could really do with the cash asap..

Thanks in advance!

pinkteapot

This is where graduates really have to watch the system, as it's really badly done.

HMRC save up all the repayments you make during the tax year. So, from Apr 09 to Oct 09 they pocketed your £104 per month. After the end of the tax year, i.e. after April 2010 this money is sent to Student Loans in one lump sum and credited to your student loan account.

It can take ages. When I used to have my student loan, in one year Student Loans didn't actually receive my repayments till the following Feb, in your case that would make it Feb 2011 (i.e. HMRC had had some of the money for almost two years).

As a result, it is easy to make repayments until well after you have actually finished paying the loan. You then have to reclaim this money.

Student Loans do prefer to receive a P60 from the end of the relevant tax year. It will state how much you have made in repayments during that year.

However, I watched mine closely, and phoned Student Loans to tell them I had finished paying in August of one year. If they had had their way, I would have kept making payments for another year at least before they realised I was done! As the tax year was still in progress, I obviously couldn't send a P60. They accepted my pay slips for April to August of that year and I wrote a letter explaining that I'd repaid £x and therefore my loan was paid off.

Poolie

You would not have a P60 for the tax year 2009/10 as you were in employment at the end of the tax year. Best option is to send copies of all your payslips for the period you worked to slc who will then be able to sort your account. Make sure you include your bank details so they can process your refund quickly.