CSLM19010 - SL repayments: borrower within SA: completion of the SA return

If a borrower of an Income-contingent Student and or Postgraduate loan is liable to make loan repayments and receives an SA return, they are responsible for including liability to Student and or Postgraduate Loan repayments as part of the self assessment.

From April 2001, the SA100 Main tax return, (together with associated notes), has been revised to allow the borrower to self assess in respect of CSL (Collection of Student Loans process). The borrower does not have to calculate SA liability - HMRC can be asked to calculate. Additionally from April 2010 the SA200 Short tax return (together with associated notes) has also been revised to allow borrowers to report details of their CSL liabilities. The Short tax return does not give the borrower the option to self calculate but it does include a working sheet which will give a rough guide to any outstanding tax, NIC and  Student and or Postgraduate loan liabilities.

In particular there are specific entries as follows

  • A question in the Student/Postgraduate loan section of both returns asks taxpayers to confirm whether or not they are repaying income-contingent Student loans and or a Postgraduate loan. 
  • A second question in the Student loan section of both returns asks for the amount of the Student Loan repayments deducted by the employer during the year. 
  • The third question has been updated from April 2020 and asks for the amount of the Postgraduate Loan repayments deducted by the employer during the year. (This previously asked whether the borrower thinks that their loan will be fully repaid in the next two years).
  • A question on the online version of the return asks for the customer's loan and or plan type.  This can be confirmed by the Student Loans Company.
  • A section within the SA Calculation to determine
  • The level of income, (both earned and unearned), upon which Student and or Postgraduate Loan repayments are to be calculated. (See note 1 below) You may need to consider payroll benefit in kind when completing SA return (see note 2 below) 
And
  • The amount of Student and or Postgraduate Loan repayments due, based on the customer's loan and or plan type threshold. 

Note

1)  Unearned income is taken into account in computing liability to Student and or Postgraduate Loan repayments only if the total amount of unearned income exceeds £2,000. If unearned income

  • Does not exceed £2,000 disregard unearned income
  • Exceeds £2,000 include the total amount of unearned income 

2) Some payrolled benefit in kinds are not subject to Class 1 National Insurance Contributions, therefore Student and or Postgraduate loan would not be liable. 

If a borrower is in receipt of payrolled benefit in kind taken via PAYE and completes a Self Assessment tax return, they will need to complete the following steps to ensure correct Student and or postgraduate loan repayment are reported. The following steps can be found on Gov.uk by searching Tell HMRC about a student or postgraduate loan in your tax return.