How to repay
Your repayments will be taken out of your salary at the same time as tax and National Insurance if you’re an employee. Your payslips will show how much has been deducted. You may need to tell your employer which plan you’re on.
You start repaying when your income is more than the minimum amount.
There’s no penalty for paying some or all of your loan off early.
If you’re self-employed
If you’re an employee and you do a tax return
If you earn over the minimum amount, your employer will deduct loan repayments from your salary.
Check your payslips or P60 to see how much of your loan you’ve paid off during the tax year. You’ll need to include this information when you fill in your tax return.
The tax year runs from 6 April to 5 April the following year.
If you work abroad
The rules are the same if you work for a UK employer abroad. If you work for a foreign employer, your repayments are based on:
- the minimum amount under Plan 1 for that country
- the minimum amount under Plan 2 for that country
- the minimum amount under the Postgraduate Loan plan for that country
If you go abroad for more than 3 months, complete an overseas income assessment form to:
- estimate your income for the next 12 months
- provide your bank details so you can pay by Direct Debit
The Student Loans Company will work out whether you have to repay and how much.
You’ll have to complete the income assessment form every year you’re abroad.
The Student Loans Company has detailed information on repayments.
If your employer goes into liquidation
You’ll be asked to send your P60 or payslips to HMRC to show them what repayments you’ve made.
If you do not have your payslips or P60, you may need to contact the liquidator to get the information from the payroll records.
Checking your repayments
You can check your repayments and balance: