The Student Room Group

HMRC income variance

Sorry for this long post but…

My daughter applied for student finance - she’s studying in London and living away from home.

She has been allocated the minimum 6116.

My total household income for 2019/20 was 66,823 BUT 30,000 of that sum was not taxable because I received a redundancy payment that year. So my taxable income for the tax year was 51,378 which is the figure on my tax return - I have shared my full tax return and calculations with SFE.

In addition HMRC have told SFE that I hadn’t declared 66,823 so SFE added that figure to the 51,378 to produce a total income figure of 118,201!!! I only wish I’d earned that amount - they are double counting my income. My tax return clearly states 51,378 and every time I call the self assessment tax team they agree with me.

SFE have submitted a request to HMRC twice and they have confirmed 66,823.

I have made a formal complaint but I’m really worried that this is just a automated process so won’t get looked at properly. Has anyone else experienced this? Does anyone know what I can do get get someone to look at this properly?
(edited 2 years ago)
Original post by Delta Cute
Sorry for this long post but…

My daughter applied for student finance - she’s studying in London and living away from home.

She has been allocated the minimum 6116.

My total household income for 2019/20 was 66,823 BUT 30,000 of that sum was not taxable because I received a redundancy payment that year. So my taxable income for the tax year was 51,378 which is the figure on my tax return - I have shared my full tax return and calculations with SFE.

In addition HMRC have told SFE that I hadn’t declared 66,823 so SFE added that figure to the 51,378 to produce a total income figure of 118,201!!! I only wish I’d earned that amount - they are double counting my income. My tax return clearly states 51,378 and every time I call the self assessment tax team they agree with me.

SFE have submitted a request to HMRC twice and they have confirmed 66,823.

I have made a formal complaint but I’m really worried that this is just a automated process so won’t get looked at properly. Has anyone else experienced this? Does anyone know what I can do get get someone to look at this properly?


Hi, redundancy payments although not taxable, do come from a taxable source and therefore do affect the students entitlement.

If your household income has dropped by more than 15% then the sponsor(s) can complete a Current Year Income form to provide their estimated 2021/22 tax year income. If they do this, it's important they update us if their income changes throughout the year because at the end of the tax year we will ask them to provide the actual income they earned with evidence and if their actual income doesn't match the estimated income they provided then it could cause the student to be overpaid and be required to pay money back. Sponsors can download this form and find out more information by clicking here https://media.slc.co.uk/sfe/currentyearincome/index.html

Thanks, Isaac

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