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Self Assessment Balancing Payment Calculator

Calculate your student loan balancing payment due via Self Assessment. Essential for self-employed individuals and those with multiple income sources.

Significant Balancing Payment Due!

Amount due: £678(£56 per month to budget)

Due date: 31 January 2027

Action required: Start budgeting now and consider voluntary SLC payments to reduce this bill.

Self Assessment vs PAYE

Self Assessment combines ALL income sources against thresholds, while PAYE treats each job separately. This can create unexpected bills.

2012-2023 students (England/Wales)

Annual Income Sources

£

All PAYE jobs combined (from P60s)

£

Net profits after expenses

£

Rental income after allowable expenses

£

Dividends, savings interest, investments

PAYE Deductions Already Made

£

From P60 or payslips (annual total)

Key Rules

• Unearned income: All included if total over £2,000

• PAYE vs SA: SA combines all income sources

• Due date: 31 January following tax year

• Late payment: 5% penalty after 30 days

Self Assessment Income Summary

Income Breakdown

PAYE Employment:£25,000
Self-Employment:£8,000
Property Income:£3,000
Unearned Income:£0 (of £1,500)
Total SA Income:£36,000

Threshold Comparison

UG Threshold (Plan 2):£28,470
Income Above UG Threshold:£7,530

Student Loan Liability Calculation

Undergraduate Loan (Plan 2)

Income above threshold:£7,530
Rate:9.0%
Annual liability:£678
Total Combined Liability:£678

1.9% of total income

Balancing Payment Due

Calculation

Total UG liability:£678
Less: PAYE UG deductions:-£0
UG balancing payment:£678

Payment Details

£678
Total due on 31 January 2027
Monthly equivalent:£56

Payment is made alongside your income tax and NI balancing payment via Self Assessment.

Important Warnings

  • No PAYE deductions made but total income exceeds most thresholds - expect substantial bill

Recommendations

  • Budget £56 per month for the balancing payment
  • Consider making voluntary payments to SLC throughout the year to reduce the January bill
  • Contact SLC about adjusting your PAYE tax code to collect repayments monthly
  • File Self Assessment early to get advance notice of the payment due
  • Consider the deadline: payment is due by 31 January with penalties for late payment

Understanding Self Assessment Student Loan Payments

PAYE vs Self Assessment

  • • PAYE: Each job assessed separately against threshold
  • • Self Assessment: All income combined against threshold
  • • Multiple small jobs can escape PAYE but trigger SA liability
  • • Self-employment income always triggers SA calculation
  • • Balancing payment collects the difference

Key Rules

  • • Unearned income: All included if over £2,000 total
  • • Payment due: 31 January following tax year end
  • • Late payment penalty: 5% after 30 days, 5% after 6 months
  • • No payments on account for student loans
  • • Voluntary SLC payments can reduce SA bill

Common Scenarios

Two part-time PAYE jobs below threshold:

Each job pays nothing via PAYE, but combined income triggers SA liability

PAYE job plus self-employment:

PAYE job may pay some repayments, but SE income increases total liability in SA

High unearned income:

Over £2,000 unearned income means all dividends/interest count toward student loan calculation

Facing a Large Student Loan Balancing Payment?

Unexpected student loan bills through Self Assessment can be substantial. Consider making voluntary payments throughout the year or adjusting your tax arrangements.