How do I repay my student loan through Self Assessment?
If you are self-employed, HMRC calculates your student loan repayment from your Self Assessment return, using your income for the whole year. You repay 9% of income above the threshold on Plan 1, 2, 4 or 5, and 6% above the Postgraduate Loan threshold. Any repayments already taken from a salary are deducted.
Figures checked against gov.uk on . General information, not tax advice.
At a glance
- Plans 1, 2, 4 and 5
- 9% of income above the plan threshold
- Postgraduate Loan
- 6% of income above its threshold (£21,000 on gov.uk's table)
- If also employed
- HMRC uses your combined income for the year
How it is worked out
The repayment is based on your total income for the year, not just your profit from self-employment. If you are also employed, HMRC combines the two and credits any repayments your employer already took through payroll. Thresholds differ by plan and are updated, so use gov.uk's current table rather than a remembered figure.
Who has to file because of it
gov.uk lists an off-payroll worker who is repaying a student or postgraduate loan among the people who must send a Self Assessment return.
The amount is added to your Self Assessment bill, so allow for it when you budget for the January balancing payment.