Give the accountant your student-loan plan, any postgraduate loan and repayments already deducted through payroll. Self Assessment can include a further repayment calculation. A loan deduction on a payslip must not be ignored or confused with Income Tax already paid.
Confirm your loan plan first
Check your Student Loans Company information and the repayment plan that applies to the tax year. Do not choose a plan just because a friend started university at a similar time. Postgraduate loans can apply alongside an undergraduate loan, and the return needs the correct information about both.
Use the rates and thresholds for the year being filed. Different plans have different thresholds, so an estimate made using the wrong plan can give a misleading result. HMRC's return guidance also checks whether repayments were due to start on or before 6 April of that tax year; a newly issued loan does not automatically mean repayments are already due.
Include deductions already made through payroll
Give your accountant your P60 and relevant payslips showing student and postgraduate loan deductions. These amounts are not the same as PAYE Income Tax. Entering payroll deductions in the wrong place can lead to an incorrect remaining liability.
For example, someone employed during the week and self-employed at weekends may already have paid through payroll. The annual calculation can still produce an additional repayment because it takes account of relevant income reported on the return.
Explain direct payments and balance changes
Tell the accountant if you made voluntary payments directly to the Student Loans Company, paid off a balance or received instructions to stop deductions. Do not automatically treat a voluntary payment as an offset against a Self Assessment repayment; the correct treatment needs checking.
If your loan is nearly repaid, compare the return position with the latest loan information and ask how any potential overpayment will be resolved. HMRC and the Student Loans Company have different roles in that process.
Review the calculation as a whole
A larger-than-expected bill is not always extra Income Tax. Ask for the student loan, postgraduate loan, National Insurance and tax components to be explained separately.
TaxSimba can use the plan details and evidence you provide when preparing your return. Supply them early, particularly where employment deductions or a recent repayment make the year-end position less straightforward.
Reconcile payroll loan deductions separately
Illustrative preparation example.
Collect the P60 or payslip evidence of student and postgraduate loan deductions and identify the relevant plans. Keep those figures separate from PAYE Income Tax. Otherwise the return can miss a repayment already made or mislabel it as ordinary tax.
Check: Are all payroll repayments and applicable loan types included in the review?
| Check | Practical action |
|---|---|
| Which plan and repayment start apply? | Use Student Loans Company evidence for the tax year. |
| What did payroll already deduct? | Provide student and postgraduate amounts separately from PAYE Income Tax. |
| Were there direct payments or a cleared balance? | Flag them for review instead of treating them as automatic offsets. |
Can postgraduate and undergraduate repayments both apply?
Yes, depending on the loans and circumstances. Supply details of both rather than selecting only one.
Is a larger bill necessarily extra Income Tax?
No. Ask for tax, National Insurance, student loan and postgraduate loan components to be shown separately.
Download a checklist for this guide
- Confirm plan types and repayment-start details.
- Collect P60 and relevant payslips.
- Separate student and postgraduate payroll deductions.
- Record direct payments or balance clearance.
- Review each component of the final calculation.