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HMRC internal manual

Collection of Student Loans Manual

HM Revenue & Customs
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SL repayments: borrowers within SA: in-year settlement cases

You may occasionally come across cases in which

  • A taxpayer, agent or executor requests early settlement of liabilities, (normally following death or emigration)


  • The taxpayer is a CSL (Collection of Student Loans) borrower with liability under SA

Note: HMRC has no right to collect Student Loan repayments unless a statutory return has been issued to the taxpayer

If you receive a claim for early settlement before the issue of the SA return

  • Follow the procedures for in - year permanent cessation cases. For more information see business area ‘Special Cases’ in the SA Manual
  • Do not include liability in respect of CSL liability in the calculations sent out to the taxpayer, agent, and so on
  • When you agree the liability to tax and NICs advise the customer to contact the Student Loans Company to ascertain the amount payable to settle CSL liability
  • Send a copy of the In-Year Settlement stencil (PDF 6KB) to the Student Loans Company with a covering letter. Retain a copy in the SA papers

If the borrower does not settle the liability and it is necessary to issue a formal SA return HMRC will resume responsibility for any unpaid CSL liability. In these circumstances

  • Check with the Student Loans Company to see whether the CSL liability has been settled and agree as to how any liability should be settled. The normal procedure will be

    • If full settlement has been made to the Student Loans Company ensure that the CSL charge is excluded from the balancing payment arising from the processing of the SA return
    • If settlement has not been received by the Student Loans Company include the CSL liability within the balancing payment as normal