PAYE amounts after student loan paid off

So up until last month I was paying off my student loan via PAYE via my umbrella company. The loan deduction was around £120 a week as I'm paid weekly. The PAYE amount per week was around £292.

Since I've had the student loan deduction removed my PAYE deduction has gone up roughly by the amount the loan deduction was. I was under the impression I'd be paying nearly the same amount of PAYE.

Has my umbrella made a mistake or am I just misunderstanding how it works?

Thanks in advance.


  • liz_bartunliz_bartun Forumite
    183 Posts
    Part of the Furniture 100 Posts
    If you put a 'salary' into a salary calculator it doesn't make any difference to tax/NI/pension contributions when the student loan is removed. But umbrella company pay can be quite different to a standard employee salary arrangement. You should really ask your umbrella company to clarify the situation.

    Also, check your tax code hasn't changed.
  • sherambersheramber Forumite
    16.1K Posts
    Eighth Anniversary 10,000 Posts I've been Money Tipped! Name Dropper
    You may be better posting on the Cutting Tax forum
  • silvercarsilvercar Forumite, Ambassador
    44.8K Posts
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Your student loan deduction is an amount calculated as a set percentage of all earnings (gross) over the threshold.

    Once you stop paying your student loan, you won’t have the deduction, so your take home pay should increase by the amount that was going to student loan repayments. This is for PAYE, if you have dividend income the repayments may be calculated differently.

    It does depend how the umbrella company calculates your income.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, in my home and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of
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