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HMRC internal manual

Collection of Student Loans Manual

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HM Revenue & Customs
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Compliance: borrowers compliance: switching off notices

Student Loan repayments are due for years of assessment that have been switched on and not switched off. The Student Loans Company issues notices to borrowers, and the Board of Inland Revenue, on behalf of the Secretary of State for Education and Employment. The notice tells the borrower when liability to repay under SA commences or commenced.

The notice may just show the 6 April start date rather than the first year of assessment. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) CSLM8515(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Under the regulations the borrower is notified of the first year he is no longer required to make repayments. The Student Loans Company may simply confirm to the borrower that the loan had been repaid in full. This can be accepted as a valid notice for the year of assessment in which the confirmation is issued and the previous year of assessment provided the

  • SA return has not been submitted

And

  • Filing date has not passed

However, where no notice has been issued to switch off Student Loan repayments, yet the loan had, in fact, been repaid, the repayments remain due and must be included in the SA return. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

As originally enacted, the regulations notified the last year of assessment for which repayment was required, but this only applies to 2000-2001. Thus someone switched on for 2000-2001 cannot be switched off for that year, while for subsequent years repayment liability can be switched on and off before the 31 January filing date for the year in question, if the loan is repaid.

Greater retrospection for switch off is not permitted as this would benefit borrowers who file their returns late. These borrowers are still required to pay the repayment due on their income, which permits penalties to be sought under S93(5) and / or S95 and/or Schedule 24 FA2007.