SL repayments: calculation of loan repayments: who must repay student loans to HMRC?
HMRC will be responsible for handling Student Loan repayments if all of the following conditions apply.
- Is resident in the UK for tax purposes
- Took out an income contingent Student Loan in respect of a course in higher education that commenced after August 1998
- Ceased higher education, either by graduating or for any other reason, during CY-1 or earlier
And, is either
- Employed and within Class 1 NIC
- Receives an SA return
|1.||Borrowers who are resident abroad will make Student Loan repayments directly to the Student Loans Company. HMRC will not become involved unless the residence position changes|
|2.||Borrowers with the earlier fixed - term repayment loans will continue to make repayments to the Student Loans Company. If a borrower has both a fixed - term and an income contingent loan then it is possible that repayments will be made to both the Student Loans Company and HMRC|
|3.||Repayment of an income contingent loan cannot commence before 6 April following the tax year in which a student left college or university, for whatever reason. Some higher education courses have a break from college for work experience. This is an integral part of the course and the student is not deemed to have left college|