SolvedCSLM16015 | SL and PGLrepayments: calculation of loan repayments: who must repay Student and or Postgraduate Loans to HMRC?
From HM Revenue & Customs · Collection of Student Loans Manual
HMRC will be responsible for handling Student Loan and Postgraduate Loan repayments if all of the following conditions apply.
The borrower
Is resident in the UK for tax purposes
Took out an income contingent loan in respect of a course in higher education that commenced after August 1998
Ceased higher education, either by graduating or for any other reason, during CY-1 or earlier
And, is either
Employed and within Class 1 NIC
Or
Receives an SA return
Notes:
| 1. | Borrowers who are resident abroad will make Student Loan and or Postgradaute Loan repayments directly to the Student Loans Company. HMRC will not become involved unless the residence position changes |
|---|---|
| 2. | Borrowers with the earlier fixed - term repayment loans will continue to make repayments to the Student Loans Company. If a borrower has both a fixed - term and an income contingent loan then it is possible that repayments will be made to both the Student Loans Company and HMRC |
| 3. | Repayment of an income contingent loan cannot commence before 6 April following the tax year in which a student left college or university, for whatever reason. Some higher education courses have a break from college for work experience. This is an integral part of the course and the student is not deemed to have left college |