I've paid more than 9% over the threshold

Personwithquestions

Hi, I've tried to get a refund in the past because I paid more money to the SLC than the 9% over the threshold, but they said they can't refund me as I earnt over the threshold that year, regardless if the amount I paid was incorrect. Are they allowed to do this? 

The same has happened this year, I've still aplied for the refund, but wondered if you could help explain this further? 

Or if you could let me know where to look to find out more information as the website is very sparce, and doesn't explain why you can't get a refund when you have paid more than the 9% over the threshold. I thought the whole point of the student loan was it would never be more than 9% of your income over a certain threshold, so it was affordable to live and repay the loan.

Thank you for your help.

Ed-1

Personwithquestions said:

Hi, I've tried to get a refund in the past because I paid more money to the SLC than the 9% over the threshold, but they said they can't refund me as I earnt over the threshold that year, regardless if the amount I paid was incorrect. Are they allowed to do this? 

The same has happened this year, I've still aplied for the refund, but wondered if you could help explain this further? 

Or if you could let me know where to look to find out more information as the website is very sparce, and doesn't explain why you can't get a refund when you have paid more than the 9% over the threshold. I thought the whole point of the student loan was it would never be more than 9% of your income over a certain threshold, so it was affordable to live and repay the loan.

Thank you for your help.

The way it works is the same as National Insurance Contributions. If you are an employee, you are required to pay 9% of your earnings over the pay period threshold (i.e. if you are paid monthly then it's the annual threshold divided by 12). That is not an incorrect payment. It is what you are required by law to repay.

https://www.legislation.gov.uk/uksi/2009/470/contents

(Note these regulations have been amended several times since by further regulations.)

There is a provision though that if your annual income is below the annual threshold, then you can reclaim any payments made that year.