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HMRC internal manual

Collection of Student Loans Manual

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HM Revenue & Customs
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SL repayments: borrower within SA: completion of the SA return

If a borrower of an income-contingent loan is liable to make loan repayments and receives an SA return, he or she is responsible for including liability to Student Loan repayments as part of the self assessment.

From April 2001, the SA100 Main tax return, (together with associated notes), has been revised to allow the borrower to self assess in respect of CSL (Collection of Student Loans scheme). The borrower does not have to calculate SA liability - HMRC can be asked to calculate. Additionally from April 2010 the SA200 Short tax return (together with associated notes) has also been revised to allow borrowers to report details of their CSL liabilities. The Short tax return does not give the borrower the option to self calculate but it does include a working sheet which will give a rough guide to any outstanding tax, NIC and student loan liabilities.

In particular there are specific entries as follows

  • A question in the student loan section of both returns asks taxpayers to confirm whether or not they are repaying income-contingent loans. (See note 1 below)
  • A second question in the student loan section of both returns asks for the amount of the Student Loan repayments deducted by the employer during the year. (See note 2 below)
  • The third question asks whether the borrower thinks that their loan will be fully repaid in the next two years. (See note 4 below)
  • A section within the SA Calculation to determine

    • The level of income, (both earned and unearned), upon which Student Loan repayments are to be calculated. (See note 3 below)

    And

    • The amount of Student Loan repayments due

Notes:

| 1. | This entry on the SA return will be automatically checked against the SL signal held on the taxpayer’s SA record, (which you can view in SA Function MAINTAIN RETURN SUMMARY). If there is a discrepancy, for example, if the taxpayer ticks ‘No’ but the SA record indicates that the taxpayer is a Student Loan borrower, it will be identified by means of a CSL SA work list entry.(This content has been withheld because of exemptions in the Freedom of Information Act 2000) | || | 2. | This entry on the SA return will be automatically checked against the Employments Framework. If the Student Loan deduction shown on the return differs by more than the pre-defined value the discrepancy will be identified by means of a CSL SA work list entry.(This content has been withheld because of exemptions in the Freedom of Information Act 2000) CSLM19020 | | 3. | Unearned income is taken into account in computing liability to Student Loan repayments only if the total amount of unearned income exceeds £2,000 | |   | If unearned income | |   | * Does not exceed £2,000 disregard unearned income | |   | * Exceeds £2,000 include the total amount of unearned income (do not deduct £2,000) * If the figures suggest that the Student Loan amount calculated by the tax return will exceed the outstanding loan balance, East Kilbride Student Loans Unit will amend the Self Assessment calculation and send a revised HMRC statement of account showing the corrected amount of Student Loan payable. * If the figures suggest that the Student Loan amount calculated will not exceed the loan balance, even if the loan is nearing conclusion, HMRC will not revise the Student Loan Self Assessment calculation. | | 4. | * An entry is this box allows a verification to take place between HMRC and the Student Loans Company. After checking, there will be one of two outcomes:
- if the figures suggest that the Student Loan amount calculated by the tax return will exceed the outstanding loan balance, East Kilbride Student Loans Unit will amend the Self Assessment calculation and send a revised HMRC statement of account showing the corrected amount of Student Loan payable.
- if the figures suggest that the Student Loan amount calculated will not exceed the loan balance, even if the loan is nearing conclusion, HMRC will not revise the Student Loan Self Assessment calculation. |

 

For more information about

 

  • Logging and capturing an SA return, see the SA Manual
  • Action to take upon receipt of a return in respect of the year in which loan repayments cease, see CSLM19040