Student loans
From 6 April 2016, there are two types of student loan repayment plans.
It is important to identify the plan under which your client is making repayments, as a different repayment calculation applies to each plan.
Individuals either living in Northern Ireland or Scotland or who were EU students funded by Northern Ireland or Scotland will make repayments under Plan 1.
Individuals either living in England or Wales or who were EU students funded by England or Wales, will have their plan type determined by the date on which they started their course. If this date was before September 2012, then they will make repayments under Plan 1. If they started after 1 September 2012, then they will repay under Plan 2.
Repayment calculation
- Under Plan 1, for the year 6 April 2016 to 5 April 2017, the repayment is calculated as 9% of relevant income in excess of £17,495.
- Under Plan 2, for the year 6 April 2016 to 5 April 2017, the repayment is calculated as 9% of relevant income in excess of £21,000.
Completing Student Loan repayments
| Client is liable to make Student Loan repayments | Select to make the rest of the page active |
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Plan type(s) Note: If your client is required to make both Plan 1 and Plan 2 repayments, then the tax calculation will show the repayments as Plan 1, in accordance with HMRC instructions.
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Select Plan 1, Plan 2 or Both |
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Total repayments deducted from all employments
If the amount taken from your client’s employment income is greater than the calculated amount, the software will not calculate a repayment. If a refund is due, then this will be processed by the Loan repayment company.
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Enter the figure of repayments taken from your client’s employment income. This amount will populate Box 2 on page TR5 of the main return, and will be used to reduce the calculated loan repayments payable. |
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Student Loan may be fully repaid within the next 2 years Tip: If your client is an employee with student loans expected to be repaid within two years, then it might be worth opting to pay the remaining balance by direct debit, to avoid overpaying.
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Ticking this box will populate Box 3 on page TR5 of the main return |
How do I get here?
Tax adjustments and charges > Student loans