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Student loan repayment amounts

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Comments

  • kaMelo
    kaMelo Posts: 2,736 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 30 May 2023 at 11:57PM
    If6was9 said:
    This is an interesting thread and does highlight some injustices in the system. 

    Further to the fluctuations in pay, it can lead to unjust outcomes another way. I have a colleague who due to a mix up at HMRC and their employer, they were put on the wrong tax code. They were also paid their first 2 months in one payment, meaning SLC took 9% of all the 2nd months earnings, not just the wage above the threshold. Also they have been taxed more than they should have been for several more months. When that is refunded it will be through payroll meaning SLC will again take way more than if their payment had been correct each month (approx £100 extra more a month) meaning due to errors elsewhere, they're about £500 down on where they should be.

    Is there no way of getting this refunded by SLC? 
    That's an employer problem not a student loans problem. The employer chose to report two months earnings in one pay period, if they had correctly reported the earnings over two months the student loans repayment would have been correct. If they want that amount back I would suggest they speak to their employer.

    Student loan repayments are calculated on gross earnings per pay period. Any tax refund will reduce (or remove completely) the tax due in that pay period but it won't increase their gross earnings, therefore  it won't affect their student loan repayment.
    For student loan repayment calculations any tax due or refunded in a pay period is irrelevant.

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