PILON/Student loan issues

lrw123

Hi everyone,

Following a redundancy in May I believe the tax I paid in terms of income tax was calculated wrong, as was student my loan repayment. A normal month for me would be as follows:

Gross pay: £2,829.16
Income Tax: £356.20
Student loan deduction: £103

As I'd only been with my company for 15 months, the redundancy payout I received was relatively small, and was of course un taxed. There were however several taxable elements in my final pay packet. They amounted to a total of £13,624.36. This was made up of my final month's salary, three months PILON, and untaken holiday days.

Of this £13,624.36, the deductions taken were:

Income Tax: £4,094.93
Student loan deduction: £1,053.00

I haven't included NI deductions as they appear to be correct.

So essentially it appears to have been calculated on the assumption this was now my usual monthly salary. I've contacted HMRC who informed me I can make a claim RE the Income tax after 28 days. However Student Loans informed me this would be something I need to speak to my former employer about but that appears to go against advice I've read elsewhere, including their own website. My payslip had a clear breakdown of the final pay packet, clearly stating which part was PILON etc.

So I'd just like to clarify that I'm in the right here and am owed refunds on both my student loan repayment and also my income tax?

Income tax wise, I'm aware this would be automatically resolved upon finding new employment and receiving my first wage, or via a rebate following the end of the financial year. This is hard for me as I'm now unemployed with no new role on the horizon and can't afford to wait 12-14 months for a hefty refund I'm due to the mistakes of my former employer and/or HMRC. By my calculations across the two I'm owed somewhere in the region of 3k which is a lot of money to be missing out when unemployed, considering I don't qualify for any benefits either.

Any help would be much appreciated! Thanks

chrisbur

It is highly unlikely that your tax figure is wrong but it can be checked if you give the taxable pay to date and tax paid to date along with the month number or date of payment of the final payment.  
At any given time you only get a proportion of all allowances, so for example in month 2 you get 2/12 of your annual tax allowance 2/12 of your 20% band allowance 2/12 of your 40% tax allowance and so on.
This looks like you have paid a fair bit of 40% tax.
Details of a P50 which is the tax refund claim form are here.
https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

silvercar

If your income for the tax year takes you above the student loan income threshold, then I don't think you will be eligible for a refund. If your income is under the threshold then you should be able to get the money back.

Similar questions have been asked on the student board here: https://forums.moneysavingexpert.com/categories/student-money-saving

housebuyer143

You can claim your student loan over payment back but you need to wait until next April after you get the P60. You just need to call them once you have it. 
It sucks but this is the only way it can be done I believe. I have had to claim it back whenever I get a bonus in the year.