Student Loan Deductions - Under the Threshold

fiestychick

Hi All,

I work part-time and earn £15,000 a yar which is under the threshold for student loan deductions.

My employer made a mistake with my wage last month due to a new sickpay system they implemented and subsequently paid me in two chunks a couple of days apart. I didn;t get a wage lsip for the second payment but I now have this month's wage and they have done all of they have done it so they have added the amount onto my wage along with some other amounts which they have then deducted. Ultimately it looked like I was paid £2500 this month but 1400 has been deducted as 'finance' and 'sick pay'. It evens out fine although I can't really understand what/why they have done it! The upshot is that I have now had £47 deducted for student loan.

My question is can they do this as over the tax year I earn below the threshold? This deduction is based on an incorrect amount of me being paid.

Thanks

BMN

The Pay-as-you-earn (PAYE) tax system is named like so because that is how it works. - you pay tax (and student loan contributions) as you get your wage slips, rather than over the course of the year

I believe you can apply for a refund from the Student Loans Companys (SLC).