Taking Account

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  • Taking Account

Student Loan deductions

August 2010

If you make student loan repayments via your salary, the total repayments in a year need to be entered on your self-assessment tax return, if you are required to fill one in.

Your P60 from your employer at the end of the tax year will include deductions made by that employer only. If you had previous employment in the tax year it may be necessary to add student loan deductions from your payslips for the earlier employments to ensure that your tax return is correct.

Failure to show the full value of loan repayments made may result in excessive Self Assessment payments. Although the extra payments should be credited to the loan account there is an effective cash flow disadvantage.

Hilton Sharp & Clarke