Student loan refund battle

lcc86

I will try and keep this as succinct as I can:

December 2025 - paid off student loan as only had a couple of payments left.

January 2026 - started new job. Student loan was deducted as P45 from previous job said I still had a loan. Called SFE to process refund but funds not yet received from employer/HMRC.

February 2026 - called SFE, still no funds received. Contacted employer who advised funds had been sent in bulk payment to HMRC and to contact them. HMRC advised employer needs to contact them to have payment allocated. Checked with SFE who also advised the same.

March 2026 - lots of back and forth with employer who state it is not their responsibility. Complaint raised.

April 2026 (last week) - response to complaint from employer saying it is still my responsibility to contact HMRC to get payment allocated, and that both SFE and HMRC have misinformed me.

Today - calls to both SFE and HMRC again who have again advised my employer needs to contact HMRC to resolve. I have responded to employer again to advise of this.

Does anyone have any advice on next steps? I have been going round in circles for 3 months trying to get the overpayment refunded and have made no progress, constantly told it is someone else's responsibility. Would it automatically be refunded now we are in a new tax year? Is there any specific legislation or guidance I can quote to whoever is the responsible party to help get this resolved?

Worried_fool

Student loan payments are held in limbo until the next financial year. You can waste as much energy as you like making complaints, but you will not get anywhere.

I suggest that you monitor your account with SFE: once the credit shows up there, you should then be able to request a refund. I would expect this to happen early in April 2027.

lcc86

https://forums.moneysavingexpert.com/discussion/comment/81970667#Comment_81970667

So I am not able to access my overpayment from 2025 until 2027? That seems crazy! I have been able to get a refund within days before from them, but they say they have yet to receive it from HMRC on this occasion.

Edit - they also didn't say it would be 2027 before I could reclaim, they said as soon as they get the money from HMRC they can action the refund.

sheramber

HMRC usually notify Student Loan Company after the end of the tax year- 5 April.

How soon that will happen is anybodies guess. Nobody can tell you when HMRC will forward it.

Once notified to Student Loan Company you will be able to see it in your account.