4/6/2023 0 Comments Student loan calcIf you are employed, loan deductions made through PAYE will be sent to the SLC on a regular basis. For any SL types the percentage is 9%, for PGL it is 6% The calculated repayment amount will be a percentage of all net adjusted income (above a threshold). The student loan repayment due for the year is calculated from your income in the tax year NOT the amount of debt remaining. The SLC, instead of being ‘updated’ yearly (from HMRC Payroll data), now receives more frequent details of the deductions made via PAYE during the year, making the online service more up to date. To overcome these issues the SLC introduced an online service which allows graduates and postgraduates to view their balance and decide themselves when to switch to DD payments for the outstanding SL or PGL. Often this never happened or the taxpayer did not setup a DD and this could result in the overpayment scenario above, see also ‘ Loan was paid off during the year’, below. The SLC would write to the taxpayer offering a DD option. The way to avoid a calculated overpayment was to switch to Direct Debit (DD) payments for the final 24 months or so. If a SL was paid off during the tax year through PAYE deductions, HMRC would still (via the SA100 tax return) calculate an SL repayment amount based on the total income in the tax year. Loan repayments to the Student Loan Company (SLC) had, until recently major drawbacks. The difference from Plan 1 is an increase in the threshold for triggering repayments for 2021-22 from £19,895 to £25,000.įor the 2019-20 and earlier tax year Plan 1 would apply. Introduction of Plan 4 for Scottish students (from April 2021):įrom April 2021, Scottish students who were on Plan 1 were automatically moved to Plan 4. To access the summary, please go to Check & Finish and either select Review or Print. Student Loan calculation summary now shown in TaxCalc:įrom the 2020-21 tax year onwards, the software shows a summary of the SL/PGL calculation which can be reviewed or printed. #Loan was paid off during tax year through PAYE deductions #Review of SLC loan repayment calculations for a SL and PGL #Filling in a Tax return if you are repaying a SL or PGL #Introduction of Plan 4 for Scottish students (from April 2021): #Student Loan calculation summary now shown in TaxCalc: By clicking on the below links, it will take you directly to that section of the article:
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