Self Assessment - Student Loan

First_Time_User

Hi All

Can I ask for your help please?

I work in a full time job that I pay tax and student loan through my PAYE Code. I am also a part time tutor and have to claim and pay my own tax. This is my first year doing so.

I earn £19,000 PA in my full time job and in the past tax year I earned £1,500 from my part time job. I submitted the details in my self assessment form and have been told I owe £596. After speaking with a HMRC rep on the phone I have been told that I have been charged 20% tax (£300) and the remaining £296 is owing to the student loan.

Before I make my payment I just want to know if anyone has had past experience with self assessment and student loan payments and agrees that this is correct?

Thank you in advance for your help.

Mikeyorks

Student Loan can create apparent anomalies when you are on PAYE and have to self assess.

On the part time job - the tax is correct. Superficially the SLC should be 9% x £1500 = £135.

BUT - it is 9% over £15k on your PAYE. However, that is calculated (the £15k) at 9% over £1250 monthly. Therefore if you are paid unevenly you will only pay the 9% when above £1250. But - when you put it into SA it then goes to the annual sum of 9% on the £4k (= £360) your full time employment is over £15k!

So the difference between your P60 figure for SLC and £360 ....... should hopefully agree with the difference between £296 and £135??

If you haven't followed that. Post your P60 figures and the SA calc figures. And someone will run an eye over it. If that is the anomaly .... unfortunately you have to live with it. It is far worse if you have 2 x jobs each paying just under £15k and have to SA!

First_Time_User

Hi Mike

Thank you for your reply it is much appreciated and has shed some light on what is being charged.

Regards
FTU