Student Loans and Your Tax Return

Introduction

If you're repaying a student or postgraduate loan and complete a Self Assessment tax return, you need to tell HMRC about your loan so they can calculate the correct repayment amount. Repayments are worked out based on your total income from all sources, not just what you earn through employment, and any deductions your employer has already made will be taken into account.

Who needs to report student loans on their tax return

You must complete the student or postgraduate loan repayment section of your Self Assessment tax return if the Student Loans Company (SLC) has told you that your repayments were due to start on or before 6 April of the year you're completing your return for.

This applies even if:

• Your income was below the relevant threshold
• Your employer has already deducted repayments through PAYE
• You have more than one job

If you're repaying both a student loan and a postgraduate loan, you'll need to complete both sections. Recording incorrect information may result in penalties.

How repayments are calculated through Self Assessment

Your student loan repayment (for Plan 1, 2 or 4) is calculated at 9% of your total Self Assessment income above the threshold for your repayment plan type.

Your postgraduate loan repayment is calculated at 6% of your total Self Assessment income above the threshold.

If you're repaying both a student loan and postgraduate loan at the same time, you'll repay 15% of your total income above the threshold.

What counts as total income

Total income for Self Assessment includes:

• Any PAYE employment income you had in the relevant tax year (your income from all employments will be combined, even if they were under the threshold through PAYE)
• Self-employed profits
• Property income
• Unearned income in excess of £2,000
• Income affected by basis period reform

If you were employed and your pay was over the threshold for your loan or plan type, your employer would have taken student and postgraduate loan repayments from your salary through PAYE. HMRC will deduct these repayments from the amount you have to repay through Self Assessment.

Understanding repayment thresholds for 2025/26

The threshold amounts change on 6 April every year. For 2025/26, you'll only repay when your income is over:

Plan 1: £517 a week, £2,241 a month or £26,900 a year

Plan 2: £565 a week, £2,448 a month or £29,385 a year

Plan 4: £649 a week, £2,816 a month or £33,795 a year

Plan 5: £480 a week, £2,083 a month or £25,000 a year

Postgraduate Loan: £403 a week, £1,750 a month or £21,000 a year

Which repayment plan you're on

You cannot choose your repayment plan. If you have more than one loan, you could be on different plans.

The plan you're on depends on where you applied for student finance and when you started your course:

Student Finance England:

• Plan 5: started on or after 1 August 2023 (undergraduate, PGCE, or Advanced Learner Loan)
• Plan 2: started between 1 September 2012 and 31 July 2023 (undergraduate, PGCE, Advanced Learner Loan, or Higher Education Short Course Loan)
• Plan 1: started before 1 September 2012

Student Finance Wales:

• Plan 2: started on or after 1 September 2012 (undergraduate or PGCE)
• Plan 1: started before 1 September 2012

Student Awards Agency Scotland:

• Plan 4: all courses

Student Finance Northern Ireland:

• Plan 1: all courses

If you're not sure which repayment plan you're on, sign in to your online account to check.

Completing your online Self Assessment tax return

Section 2 — 'Tell us about you'

Select 'Yes' and choose either:

• The student loan plan type you're repaying
• Postgraduate loan
• Both, if you're paying both loans back at the same time

These boxes may already be completed for you using information supplied by the SLC. If you change the boxes, a warning message will be issued advising that your entry is different from the plan type or loan provided by the SLC.

HMRC systems will verify the information supplied by the SLC and automatically calculate the correct repayment amounts due.

Section 4 — 'Fill in your return'

Enter the total amounts already deducted through your employment for the tax year you're completing your return for. You can find these amounts on your P60 or by adding up all the deductions on your payslips for that year.

You need to record student loan plan type deductions and postgraduate loan deductions separately in the relevant boxes.

Do not include any overseas direct debit payments or voluntary payments you have made in this section.

If you've had more than one job in the year, you'll need to add up the repayments shown on all of your payslips, rather than just those of the most recent job. Your P60 will not show the amounts deducted by a previous employer.

Recording incorrect deductions will affect the student loan and postgraduate loan charges, and could result in you being charged more.

Off-payroll working rules

If the off-payroll working rules apply to you for any period during the tax year, you must make your student and postgraduate loan repayments for that period through Self Assessment.

Information from the Student Loans Company

Information on your loan or plan type is supplied to HMRC by the SLC. The SLC will not tell HMRC your loan balance, but they will tell HMRC if you have:

• Repaid your loan in full
• Been charged more than you owe

HMRC will take action to reduce or remove your Self Assessment student or postgraduate loan deductions so you do not pay back too much.

If you've had multiple jobs or income sources

If you've had more than one source of income in the year, you might have to pay more than just your PAYE deductions. This is because your total income across all sources may exceed the threshold, even if individual income sources were below it.

If you do not have access to some or all of your payslips, contact your current or previous employer to obtain the figures you need.

Sources

• Tell HMRC about a student or postgraduate loan in your tax return
• Repaying your student loan

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.