CSLM20045 – SL repayments: underpayments and overpayments: SA borrower - student loans overpayment

The Student Loans Company automatically receive details of the Student Loan amount calculated on the SA return and set this against the borrower’s Student Loan account. If the amount exceeds the amount outstanding it will result in an overpayment. The Student Loans Company will not repay this direct to the borrower but will forward the overpaid amount to HMRC to credit the borrower’s SA statement.

Action by Student Loans Company

The Student Loans Company will

• Prepare a manual cheque made payable to HMRC
• Forward the cheque to East Kilbride Student Loans Unit (EKSLU)
• Provide EKSLU with the borrower’s name, NINO and date of birth for tracing
• Issue a statement to the borrower showing the amount due, the amount paid and the refund credited to HMRC

Action by East Kilbride Student Loans Unit

On receipt of the cheque (from the Student Loans Company) East Kilbride Student Loans Unit will

• Record the following details from the cheque

• Trace the Unique Taxpayer Reference (UTR) for the borrower using the NINO and name supplied
• Prepare a payslip either by

Or

Note: On the payslip show an Effective Date of Payment (EDP) of 31 January in respect of the original year the SA Student Loan payment was due

• Send the cheque and payslip to Banking Operations
• Contact the office responsible for the borrower’s SA record and advise them to update SA Function MAINTAIN SA NOTES with the following details

Action in the Local Office

The local office will use SA Function MAINTAIN SA NOTES to update the borrower’s record with the following details

• Date cheque received
• Amount of cheque (Student Loan refund amount)
• Repayment refers to Student Loans
• Effective Date of Payment (EDP)
• Tax year
• Payment made by the Student Loans Company

The credit will appear on the SA statement but will not be identified as referring to Student Loans. SA Function MAINTAIN SA NOTES should confirm this is the case.

The Student Loan payment will remain on the SA statement until the borrower contacts HMRC to request repayment if required.

Note: If the borrower is aware that the calculated figure for Student Loans on the SA return is greater than the amount outstanding on his Student Loans account he may wish to pay the outstanding Student Loan amount. If he notifies HMRC an informal stand-over can be set on the SA record and the case put on BF. When the repayment is credited to the SA statement the informal stand-over can be cancelled.