Help Understanding Plan 1 Student Loan Deductions

manetti

Hi,

I am hoping someone can help me understand how my Plan 1 student loan repayments are calculated. I followed the advice on this site about reviewing my P60s from previous tax years and, according to my sums, I believe I have overpaid. For example, in the 2012/13 tax year:

Total pay £23,672.94
Student loan deductions £749

With the threshold being £17,775 I was under the impression that the amount I should repay is calculated as follows:

(£23,672.94 - £17,775) x 9% = £530

Is there something I have misunderstood? According to the Student Loans Company I am not eligible for any repayment but I would like to understand why.

Any help is much appreciated!

Ed-1

manetti wrote: »

Hi,

I am hoping someone can help me understand how my Plan 1 student loan repayments are calculated. I followed the advice on this site about reviewing my P60s from previous tax years and, according to my sums, I believe I have overpaid. For example, in the 2012/13 tax year:

Total pay £23,672.94
Student loan deductions £749

With the threshold being £17,775 I was under the impression that the amount I should repay is calculated as follows:

(£23,672.94 - £17,775) x 9% = £530

Is there something I have misunderstood? According to the Student Loans Company I am not eligible for any repayment but I would like to understand why.

Any help is much appreciated!

You need to look at the threshold applicable in each specific tax year:



http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678511&_dad=portal&_schema=PORTAL

manetti

Thank you for responding so quickly; I thought I was probably missing something obvious!

Using the threshold for the 12/13 tax year it works out that I have still overpaid slightly so I am still a little confused but less concerned than before:

(23,672.94 - 15,795) x 9% = £709 (overpaid by £40)

Ed-1

manetti wrote: »

Thank you for responding so quickly; I thought I was probably missing something obvious!

Using the threshold for the 12/13 tax year it works out that I have still overpaid slightly so I am still a little confused but less concerned than before:

(23,672.94 - 15,795) x 9% = £709 (overpaid by £40)

Bear in mind that it's the monthly threshold that you need to use if you are paid monthly. If your total income for the year is over the threshold then you can't get a refund.

manetti

Ed-1 wrote: »

Bear in mind that it's the monthly threshold that you need to use if you are paid monthly. If your total income for the year is over the threshold then you can't get a refund.

Thank you - I will keep a closer eye on my current payslips and compare against the monthly threshold for the current tax year to ensure I am paying the correct amount.

Many thanks for your help Ed-1!