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I'm in the process of filling my self-assessment form, and have come across a section that's confusing me a little bit.

My situation is that I'm in full-time employment, and doing some freelance on the side.

One of the questions on the self-assessment form is: Did you repay or were you due to repay a Student Loan or Postgraduate Loan?

Which has a sub-question that says; Did you receive notification from the Student Loans Company that repayment of an Income Contingent Loan began before 6 April 2024?

I didn't receive such notification.

I'm still paying my student loan through my full-time employment, and it is due to be fully paid off next month. So initially I thought to answer Yes to the above, and included the deductions taken by my employer in the form (taken from P60 form). What this seems to do, however, is add about 80% of the student loan deductions as chargeable income, which is increasing the total tax I'm due to pay. This is quite confusing to me. Why am I paying self-assessment tax on my student loan? For example before being self-employed on the side I wasn't paying extra tax on my student loan deductions, so I'm a bit confused why being self-employed makes a difference. Unless I'm meant to answer No to that question?

Would this be because I've received extra income from my self-employment, and therefore I need to pay off student loan using my self-employment income? The issue with that is the student loan payment for my self-assessment is way more than the outstanding balance I had as of 05/04/2024.

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  • I don't understand the final part of your question "The issue with that is the student loan payment for my self-assessment is way more than the outstanding balance I had as of 05/04/2024." Self-assessment is not a tax in itself, it's just a way of telling HMRC what your financial situation is so that the appropriate taxes can be applied...
    – Vicky
    Commented Jun 30 at 10:43
  • Also, I suspect that the additional student loan payment due based on the additional self-employment income is not being properly calculated with respect to the very close end date of your loan. See here: nidirect.gov.uk/articles/… and I would either contact your local tax office or Student Finance to get this sorted out.
    – Vicky
    Commented Jun 30 at 10:45
  • @Vicky what I meant is that an amount is allocated to student loan in my self assessment (that I need to pay as part of my tax amount), which is significantly more than the outstanding amount I have on my student loan.
    – Kakalokia
    Commented Jun 30 at 10:50

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