Thousands overcharged on student loans

Thousands of graduates have been overcharged on their student loan repayments because of payroll software failures, according to the Daily Telegraph.

The newspaper said approximately £1.6 million was taken from 16,000 workers – that equates to around £104 each.

Those affected are graduates who operate as a sole-trader and claim benefits in kind or anyone earning over £100,000.

HMRC is now writing to those affected and a ‘temporary solution’ has been made for the rest of the tax year.

The Telegraph estimated that those who began their course in 2022/23 academic year will leave with a degree and average debt of £45,600.

Students on the old plan 2 loans begin repaying the loan when they earn more than £27,295. The repayment threshold for those starting courses this year is £25,000.