21 September 2023

HM Revenue and Customs (HMRC) has identified a small number of workers who may have been overcharged on student loan repayments on their self-assessment tax return.

This will potentially impact taxpayers who fall into all the following categories:

  • repaying student loan
  • receiving payrolled benefits in kind that are not subject to Class 1 National Insurance Contributions (NICs) though their employer
  • in self-assessment.

This has occurred as total PAYE income has been used to calculate student loan amounts, including payrolled benefits in kind (BIKs) when they should have been excluded form this calculation.

HMRC is working to fix the problem and will be writing to customers impacted by the issue to give the option of a refund or to allow the overpayment to offset against their loan as it currently stands.

Until a fix is complete, there are additional steps that can be taken to ensure the right repayments are made detailed within the student loan guidance on GOV.UK.


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