UK Tax News from TaxPenny

Due to a time delay between an employer submitting their annual PAYE return and the deductions made from an employees salary each month, it has been possible for ex students to overpay their student loan through their PAYE deductions.

Ex students can now opt out of PAYE repayments during the last 23 months of repayment and arrange to pay instalments via direct debit instead. The above scenario can therefore be avoided.

The SLC (Student Loans Company) will contact borrowers shortly before they reach their final 23 months to request if they would like to opt-in to this scheme. If you are repaying a student loan and are aware of your schedule reaching the final 23 months, you can contact the SLC directly too.