Call 020 7794 5757 - Email info@numerallp.com

HMRC tax error sees thousands overcharged on student loans

An error in payroll software used by HMRC has caused thousands of individuals to overpay on their student loans.

06 Oct 2023

An error in payroll software used by HMRC has caused thousands of individuals to overpay on their student loans.

The error saw £1.6 million taken from 16,000 workers between 2016 and 2023, totalling around £104 each. Those affected earn over £100,000 or operate as sole traders and claim benefits-in-kind.

According to HMRC, its payroll software should've automatically ignored benefits on which workers don't pay national insurance, but the software included them in student loan calculations by mistake.

HMRC stated that it is writing to graduates to inform them that they will be repaid via their student loan accounts and that a temporary solution has been put into place for the remainder of this tax year.

Around £20 billion is loaned per year to 1.5 million students in England. At the end of March, the value of outstanding loans was £206 billion.

Newsletter sign-up

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign-up today

Try a site search Tax return, dividends, pension, autumn statement...

Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

© 2024 Numera. All rights reserved. We use cookies on this website, you can find more information about cookies here.