Income Contingent Repayment if you are repaying through self assessment
Repaying through Self Assessment
If you calculate your tax returns by Self Assessment, for example because you are self employed, or have investment income, you will be required to calculate your Student Loan deductions from your earnings. You should then send the relevant amounts at the end of the tax year when you submit your tax return to HM Revenue and Customs (HMRC) (formerly the Inland Revenue). You will be required to complete a tax return to tell HMRC about your profits and expenses. From this they will calculate your tax, National Insurance and student loan repayments for the year. You will then be asked by HMRC to make your repayments after the end of the tax year. HMRC will do the calculations for you if you send in your tax return before 30 September.
If you have any questions about your Self Assessment deductions, please contact your local tax office, details of which can be found in the yellow pages under Government Offices. You can also obtain further information on the HMRC website at http://www.hmrc.gov.uk
If you are subject to both PAYE and Self Assessment
If you work as an employee, but are also self employed, are subject to tax at a higher rate or have unearned income from stocks, shares and savings etc., you will be required to calculate any Student Loan repayments due through Self Assessment in addition to any repayments which are deducted through PAYE.
If you move from Self Assessment to PAYE
If you are self employed but then begin work as an employee, you will be billed for the entire year by HMRC.
When repayments are due to end
If you would like to estimate when you will finish repaying your student loans, particularly if your annual statement indicates that it is likely to be in the current financial year, the Student Loans Company can predict when you are expected to complete repayment. Please write to us enclosing your relevant tax records, and the calculation will be made for you.
| 