Student Loans
Since April 2000 HMRC are responsible for collecting the repayments on behalf of the Students Loan Company on Income Contingent Student Loans taken out after August 1998.
Key points:
- Loans are collected from the April after you finish or leave a higher education course.
- The repayments only start when your income reaches £15,795 (6/4/2012).
- If your income is over £15,795 (6/4/2012) you will pay 9% on the excess per annum.
- In the vast majority of cases the repayments are collected through the PAYE system by an employer.
- If you are self-employed, or a self-assessment taxpayer, the repayments are collected annually through your annual Self-Assessment Tax Return.
- Unearned income (dividends & interest) is only taken into account in calculating your loan repayments if your total unearned income exceeds £2,000.
Note the same Income Tax rules and obligations that apply to SA customers also apply to SA Student Loan borrowers and if you carelessly or deliberately submit an incorrect return you may have to pay interest, a surcharge and penalties.
