HMRC have published a new informational leaflet entitled ‘The Collection of Student Loans’. This is intended to clarify many of the issues that arise from the perspective of both employers and employees.
The leaflet explains how loan repayments are deducted at a rate of 9%. There is also an annual threshold of £15,000 below which no loan deductions will be made.
In addition the leaflet has been designed to provide further information on issues including where a taxpayer has more than one source of income, record keeping requirements, working outside the UK, cases of hardship, voluntary payments and overpayments.