Student Loan Overpayment

silvercar

poshpaws_007 said:

Hi, I calculated all my P60's and was expecting around £1,500 in overpayments by when I submitted my refund form, I received £127.00 back, I know I have never earned above the threshold for many years until now, when I am just about earning over. Can I appeal against this as I spent many hours checking through old payslips and P60's? 

Treat each financial year separately. For any year that you are over the threshold, repayments deducted through normal PAYE can’t be refunded, other than mistakes. Once you are over the threshold it is individual month’s pay that counts not the year as a whole.

 So if you hit the threshold and had 6 months when you earned a lot and 6 months when you earned under the monthly threshold, those 6 high earning months would have deductions based on the monthly threshold irrespective that the other months you were under - there is no levelling or averaging.

 If there was a different year where you earned under the threshold for the year, but had some high earning months that therefore had a deduction, you could claim that amount back.

HarrySarg

Hello,

I see this segment Martin done on X the other day. I have a question regarding my situation, Iam on Plan 1 as I started University 2008. I have repaid my student loan in full in 2021. First question am I able to claim if I have already paid in full? Second question how do I find out my previous income from 2010- 2014 where I believe I was earning under the threshold? As HRMC only goes back 5 years. 

Ed-1

HarrySarg said:

Hello,

I see this segment Martin done on X the other day. I have a question regarding my situation, Iam on Plan 1 as I started University 2008. I have repaid my student loan in full in 2021. First question am I able to claim if I have already paid in full? Second question how do I find out my previous income from 2010- 2014 where I believe I was earning under the threshold? As HRMC only goes back 5 years. 

Yes, but the balance will be added back on so you will have a loan balance again. Send a subject access request to HMRC asking for the historical income data if you haven't kept records.

camelise

Unique situation here where someone may be able to provide advice.

I am on an overseas assignment with my employer, still on UK payroll and UK resident. Therefore I am liable to double taxation, in my home country (UK) and the foreign country I work in. However my employer provides tax equalisation, therefore my foreign tax is covered by my employer. However, the way this works with payroll, is that the foreign tax value is paid into my gross salary, then immediately taken out of my net salary (i.e. I don't see or 'earn' any of this value). But, student loan repayments are based on your gross income, therefore my student loan repayments are being artificially inflated due to this foreign tax in my gross salary that I don't earn (I'm paying an extra £250 a month due to this foreign tax value alone). This doesn't appear fair to me. I am on Plan 2, therefore am the situation where my debt has been increasing since graduation due to the interest rates, therefore there is little benefit in paying off faster. 

I have contacted SLC, who say to speak to HMRC, who say to speak to employer, and it goes round in circles. I am wondering if I have any basis for reclaiming the student loan amounts I have paid based on an amount of money I don't actually earn? 

LKR

Hi,
After advising my daughter to read Martin's loan overpayment article she did the calculations and worked out that she should indeed be due a few hundred quid back.  She duly filled out the application form and sent it off.  The reply she received was:

                "Hi Miss XXXX, 

                        You’re not due a refund. 

                        Thanks for getting in touch with us about your refund. 

                         We’ve reviewed your account and you’re not due a refund. 

                          For more information on repaying your student loan, visit www.gov.uk/repaying-your-student-loan 

                Thanks, 

                Student Loans Company "

A little bit of a hint as to WHY she wasn't eligible would have been useful (it not as if SLC is incapable of making an error after all).  It immediately made me think of that John Grisham novel of newbie advocate vs big, corrupt insurance company whose immediate, automatic response to any claim is to deny it.

Perhaps I should advise her to keep filling in the same refund claim form until someone there gets fed up and sends a more considered, reasoned reply?  I just want them to show their working out!

Ed-1

LKR said:

Hi,
After advising my daughter to read Martin's loan overpayment article she did the calculations and worked out that she should indeed be due a few hundred quid back.  She duly filled out the application form and sent it off.  The reply she received was:

                "Hi Miss XXXX, 

                        You’re not due a refund. 

                        Thanks for getting in touch with us about your refund. 

                         We’ve reviewed your account and you’re not due a refund. 

                          For more information on repaying your student loan, visit www.gov.uk/repaying-your-student-loan 

                Thanks, 

                Student Loans Company "

A little bit of a hint as to WHY she wasn't eligible would have been useful (it not as if SLC is incapable of making an error after all).  It immediately made me think of that John Grisham novel of newbie advocate vs big, corrupt insurance company whose immediate, automatic response to any claim is to deny it.

Perhaps I should advise her to keep filling in the same refund claim form until someone there gets fed up and sends a more considered, reasoned reply?  I just want them to show their working out!

How about showing us your working out so we can advise?

garfield23skidoo

Hi, I haven't seen anything about my situation,  so here goes:  I finished uni in the 80s, since then worked till my retirement, then just attended Further Education classes in crafts. Some years back (after 1998, by then in my 60s), took out a Plan 1 Student Loan for a Level 3 Further Education course; when in my 70s, took out a second Student Loan for a different Level 3 Further Education course. By then I was self-employed, occasionally selling crafts; and still do this. I have only twice had to make repayments:  (1) when my income (mainly pensions, plus a small amount from craft-selling) passed the repayment threshold, which at that point was still frozen; and (2) when I received a lump sum payment from HMRC due to a longstanding error they had just discovered on my pension.
I therefore have 2 questions:  Will I ever be able to stop paying back my Student Loans (as I am now in my 70s and am still liable for them); and, is it worth my while enquiring about refunds for the 2 repayments I have made?

silvercar

garfield23skidoo said:

Hi, I haven't seen anything about my situation,  so here goes:  I finished uni in the 80s, since then worked till my retirement, then just attended Further Education classes in crafts. Some years back (after 1998, by then in my 60s), took out a Plan 1 Student Loan for a Level 3 Further Education course; when in my 70s, took out a second Student Loan for a different Level 3 Further Education course. By then I was self-employed, occasionally selling crafts; and still do this. I have only twice had to make repayments:  (1) when my income (mainly pensions, plus a small amount from craft-selling) passed the repayment threshold, which at that point was still frozen; and (2) when I received a lump sum payment from HMRC due to a longstanding error they had just discovered on my pension.
I therefore have 2 questions:  Will I ever be able to stop paying back my Student Loans (as I am now in my 70s and am still liable for them); and, is it worth my while enquiring about refunds for the 2 repayments I have made?

The rules on repayment refunds are simple. If you had a repayment taken due to passing the monthly threshold for repayment, but you were under the annual threshold for the year in question, you can get a refund. If you were over the annual threshold, even by just £1, you aren’t entitled to a refund. So the question is whether your annual income for the relevant financial year crossed the loan repayment threshold. 

For a plan 1 loan the right off rules depends whether your loan was pre or post September 2006.

what year and what plan was your second student loan? Write off rules here: https://www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled

marcia_

 I applied online on the SLC repayment website this is their reply 

Thanks for getting in touch with us about your refund. We're processing your refund of £17.00 from previous tax years. We'll let you know when it's on the way to your bank.

 Disappointing was hoping for £££££ 😂🤣😂