Student Loans - Rebate given in error Student Loans - Rebate given in error - Page 3
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  1. #21

    More time posting than coding


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    Hi All
    If your interested in an update.

    Yes I do need to pay it back. HRMC called yesterday and basically I have been paid the rebate back twice.
    HMRC paid it back when I submitted by SATR for that year (17/18). I remember getting this but it didnt say it was rebate for Student Loan, it was due to overpayment. At the time I thought it was due to going onto an inside role for 6 months and then changing to an outside role.

    Apparently HRMC notified SLC (something about putting a stop on my account)...who didn't update their records so they when they reconciled my account, they also realised I had overpaid and then raised a rebate through HMRC to pay me back the 2k again!

    So yes I have to pay it back. Now the question is how

    My accountant has completed my SATR for the last year and stated I have no student loan (as I thought I didnt). They have said that rather than amend the SATR, it may just be easier to organise a payment plan with SLC.

    My question to him (of which I am still waiting answer) and I dont know if anyone on here can answer.

    By not declaring it on my SATR (and paying it back this way), does this or can this, put me in an awkward situation further down the line?

  2. #22

    Still gathering requirements...


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    Dec 2014
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    Your self-assessment will have a box you can tick, HMRC will then deduct 9% of your income towards the student loan.

    Alternatively, you can set up a direct debit plan directly with the student loans company.

  3. #23

    Double Godlike!

    ladymuck's Avatar
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    I'd keep it off your SATR if you can and just arrange to pay directly to SLC. It's always been possible to make voluntary / additional payments outside of payroll so they ought to be able to cope with this. It's better to keep the payments under your control to prevent another feck up.

  4. #24

    Super poster


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    Quote Originally Posted by MonkeysUncle View Post
    By not declaring it on my SATR (and paying it back this way), does this or can this, put me in an awkward situation further down the line?
    If you have a good paper trail that 1) they messed up (and therefore your mistake is understandable) and 2) you've paid everything you are supposed to pay then it's hard to see how you could have more difficulty than just having to explain it. Get your explanations and paper trail in good shape now while it is all fresh in your mind.

    IANAL

  5. #25

    bored now

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    Quote Originally Posted by tl97 View Post
    Your self-assessment will have a box you can tick, HMRC will then deduct 9% of your income towards the student loan.

    Alternatively, you can set up a direct debit plan directly with the student loans company.
    Not quite, your employer will be told to deduct the appropriate amount, include it in their payment to HMRC and then HMRC pass it on.
    merely at clientco for the entertainment

  6. #26

    Still gathering requirements...


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    Quote Originally Posted by eek View Post
    Not quite, your employer will be told to deduct the appropriate amount, include it in their payment to HMRC and then HMRC pass it on.
    If you are on PAYE, then yes. If you are just on self-assessment, then no.

  7. #27

    Nervous Newbie


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    Sep 2020
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    SLC and HMRC is the worst partnership ever. I was in a similar position to you while I was a permie. I got a letter to say I was at risk of overpaying, at the time my employer stop taking student loans deductions but in the background switched it to pension contributions so I was getting the same take home pay.

    1st year contracting, I forgot about the student loan and never included it on the self assessment. 18 months later, I get a letter from HMRC stating I had underpaid my student loan during the tax year and also not declared it on my self assessment. The sent a bill for the entire loan plus a fine.

    I spoke to my accountant and he said while they were right about the fine for not declaring however not the underpayment as I got a big bonus as a permie and overall in the tax year had overpaid. I tried to get the message over to HMRC who just would not have it. My accountant told me not to pay they had made a mistake. I could not be bothered to fight it as the amount was relatively small so I paid it with the fine.

    Roll forward a few months, SLC send me a refund of the fine, HMRC had just sent all of it over to SLC and because SLC could see no underpayments had been made they assumed that I had just paid my loan off. I was happy with that, but then HMRC send me a full refund of the entire amount I had paid originally, so I ended up in profit. I called them up to let them know of their mistake however yes again they were convinced I was wrong, I left it as it is.

    Lesson learned: HMRC cannot read/write/count.

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