Student Load Rebate

RickST · 26 Apr 2011 at 19:00

Hi All,
Really simple question.

I have overpaid my student loan by 2k (yes I am stupid for not checking) so I need to sort out a rebate from the SLC. My question is, would the money I get back be tax free, or taxed at my normal income tax rate, or something else?

Thanks friends

p.s I feel an SSD coming my way (wow that sounds dirty)

-BA- · 26 Apr 2011 at 19:03

I would guess if it was taken at source out of your paycheque then it will be effectively coming back to you as pay and therefore subject to tax and NI.

Hope you get it sorted though but make sure you don't pay tax on it twice. Maybe check with your payroll office if you were taxed before or after its deduction from your wages.

[TW]Sponge · 26 Apr 2011 at 19:22

I know nothing about student loads.

[TW]Sponge · 26 Apr 2011 at 19:23

-BA- said:
I would guess if it was taken at source out of your paycheque then it will be effectively coming back to you as pay and therefore subject to tax and NI.

Hope you get it sorted though but make sure you don't pay tax on it twice. Maybe check with your payroll office if you were taxed before or after its deduction from your wages.

Yeh but surely if it was out of his paycheck then he would have already been taxed on those earnings? :confused:

vertica · 26 Apr 2011 at 19:27

sponge999 said:
Yeh but surely if it was out of his paycheck then he would have already been taxed on those earnings?

If he is one of the modern payback schemes it is deducted pre-tax

[TW]Sponge · 26 Apr 2011 at 19:29

vertica said:
If he is one of the modern payback schemes it is deducted pre-tax

Ahh then I don't have a clue and my participation in this thread is over

Vonhelmet · 26 Apr 2011 at 20:12

It was almost certainly deducted pre-tax, so yes - it should be taxed and probably subjected to NIC as well.

RickST · 26 Apr 2011 at 20:13

Thanks guys, It is a recent scheme 2005 so I guess they are going to tax my ass again.