HMRC, PAYE tax and Student Loan

Annando

I had a small student loan which I repaid in full in October 2010. The money was being taken automatically from my salary through PAYE. The payments stopped automatically but I still overpaid about £150.

When I tried doing my self assessment online in May 2011 the calculation was wrong and came up saying I still owed HMRC £1551 of student loan repayments. I called the SLC and they said they'd only be able to sort this out after August 2011 when they got the relevant info from HMRC for the previous year.

I called the SLC back in November and they confirmed that I had overpaid and was due a refund. They said they would send the relevant paperwork to me. I waited for 2 weeks, got nothing so called again. This time they said they had sent the paperwork directly to HMRC and that HMRC would be issuing a refund.

I asked SLC to send me some proof that I had paid my student loan in full and that I had overpaid but they said they couldn't do that because they had already sent the relevant paperwork to HMRC and that a refund would be issued by HMRC.

I waited until mid-January to file my self assessment online but still it kept requesting £1551 for underpaid student loans. So I deleted the student loan part from my return and submitted it with nothing to pay showing.

I called HMRC yesterday about the student loan refund and they told me I'd have to amend my return online so that it would show how much I had repaid in my student loans, which I just did... So now it states that I owe HMRC £1551 in student loan repayments...

I don't want to hand over £1551 if I don't have to, specially that I DO NOT OWE THIS MONEY!

Does anyone have any pointers on how to deal with this issue? SLC have been totally useless and HMRC don't seem to understand what the problem is.

Mikeyorks

Covered several times during January - if you look back on this Forum?

Look at the penultimate para of this leaflet :

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

... where it says ' What to do if you think the amount of student Loan repayment is too much'.

You then need to Login to your online SA and Email HMRC to the effect you dispute £1551 of the amount due and ask they informally stand it over pending resolution between SLC and HMRC.

Annando

Thanks for the reply!
Sending a letter to HMRC today as apparently it needs to be via letter (person I spoke to over the phone said no email )

Thanks for your help Mike!

System

I would have thought that if SLC have sent the relevent info to HMRC, as they said they did, and you submit the return showing £1551 due then there should be a credit from SLC already on your Self-Assessment account which will cover the supposed £1551 and reduce the total amount owed to nil.

You can check your statement online to see if such a credit has been made to your account.

Mikeyorks

Annando wrote: »

Sending a letter to HMRC today as apparently it needs to be via letter (person I spoke to over the phone said no email )

Always best to follow it up by letter in these cases - but it has been done via Email :-

https://forums.moneysavingexpert.com/discussion/3692703