Plan 2 loans: Are any repayments I have made direct to the SLC taken off my Self Assessment bill?
No. You can make voluntary repayments direct to the SLC at any time. But if you do so, these payments will not reduce the amount that you have to pay under Self Assessment and should not be included on your tax return.
If you have made repayments direct to the SLC because you have been working abroad and then complete a Self Assessment return, HM Revenue & Customs (HMRC) will calculate your loan repayments without considering any direct repayments. We cover what you can do on our page What happens to my student loan if I go abroad?.
If, however, you are employed and repayments have been deducted under Pay As You Earn (PAYE) by your employer, these do come off the amount due under Self Assessment.
However, in certain circumstances a situation may arise in that between the end of the last year and submitting your Self Assessment tax return you may have moved to repaying your loan directly to the SLC and have subsequently fully repaid your loan. If this is the case your Self Assessment tax calculation may generate a student loan underpayment based on your income taxed through the Self Assessment system. If this happens and you have no further loan balance to repay it would be advisable to not include information on the student loan repayments section of the Self Assessment tax return and explain in the additional information section that you have fully repaid your loan between the 6 April 2020 and the date of submitting your tax return.
An example may help.
Jon is in Self Assessment because he is self-employed. He starts repaying his student loan by direct debit from May 2020 as he is close to finally paying off the loan and, in fact, fully repays the loan by October 2020.
When he completes his tax return for the tax year 2019/20 close to 31 January 2021 (the due date for electronic filing), he finds that the online calculation still calculates that he is due to pay student loan repayments. In these circumstances he can amend his tax return to remove the entries relating to student loan repayments and explain in the additional information box that you have now fully repaid your student loan.