Tell HMRC about a Student Loan in your tax return
If you complete a Self Assessment tax return, you must use it to tell HM Revenue and Customs (HMRC) about your Student Loan deductions.
You’ll need to complete the Student Loan repayment section of your Self Assessment tax return if the Student Loans Company (SLC) has said your repayments were due to start on or before 6 April of the year you’re completing your return for.
You must include information on your Student Loan repayments in your Self Assessment tax return. If you fail to provide the correct information you may have to pay penalties.
Your Student Loan deduction will be calculated based on 9% of your total income above the threshold of your plan type. Information on your plan type is supplied to HMRC by SLC.
How to complete your tax return
- details of any amounts already deducted through your employment
- to say if you think your Student Loan might be fully repaid within the next 2 years
If SLC have told you that your repayments did start on or before 6 April of the year you’re completing your return for, put an ‘X’ in box 1. Where you’re repaying your Student Loan, but don’t have any Pay As You Earn (PAYE) income, this is the only question you have to answer.
In box 2, put the total of the amounts already deducted through your employment for the tax year you’re completing your return for. You can work this out by adding up all the Student Loan deductions on your payslips for that year.
If you’ve had more than one job in the year, you’ll need to add up the repayments shown on all of your payslips, rather than just those of the most recent job. Your P60 won’t show the amounts deducted by a previous employer.
Where you don’t have access to some or all of your payslips or P45s, you can contact:
- your previous employer, if you’ve changed jobs and don’t have your P45
- your current employer, if you’re missing a payslip or P60
When you’ve had more than one source of income in the year, you might have to pay more than just your PAYE deductions.
Put an ‘X’ in box 3 if you believe you’ll completely repay your Student Loan within 2 years.
Completing box 3 won’t defer any payments or prevent late payment interest and penalties but can help prevent you overpaying.
If you want to, you can make additional payments to SLC. These voluntary payments are separate to amounts collected by your employer or through your tax return and won’t change them.
You can’t choose to make these additional payments instead of your normal payments and voluntary payments can’t be refunded.
Voluntary payments will reduce the overall length of your loan and the interest charged on it.
Payments if you’re working abroad
You can find additional information on the SLC website.
If you find your Student Loan repayments are causing you hardship, you should contact SLC.
If you’re an accountant, or other agent acting on behalf of an individual, you should ask them about their Student Loan status before the annual deadlines for completing their tax return.
You’ll need to complete your client’s tax return in the same way as an employee in Self Assessment.