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Student Loan Repayments on a Self Assessment Return

Short answer: GOV.UK says that if you complete a Self Assessment return you must use it to tell HMRC about student or postgraduate loan deductions, if the Student Loans Company (SLC) says repayments were due to start on or before 6 April of the year of the return. HMRC calculates the repayment on your total Self Assessment income and it is due with your tax, by 31 January.

What GOV.UK says (page updated 12 May 2026)

• The calculation is 9% of total income above your plan threshold (Plans 1, 2 and 4 for this return), or 6% above the threshold for a postgraduate loan. With a student loan and a postgraduate loan together, GOV.UK says 15% of income above the threshold.
• Total income includes PAYE employment income from all jobs (even if each was under the threshold), self-employed profits, property income, unearned income over £2,000 and certain basis period reform income.
• Amounts already taken by employers through PAYE are deducted from the Self Assessment amount.
• If the off-payroll working rules (IR35) apply to you, repayments must be made through Self Assessment (wording added 3 March 2026).
• The SLC tells HMRC if you have repaid in full or been overcharged but does not tell HMRC your loan balance; HMRC acts to reduce or remove deductions.

What to enter

• Section 2 ("Tell us about you"): answer Yes and select your plan type and/or postgraduate loan. It may be pre-filled from SLC data; changing it triggers a warning.
• Box 1 (paper): X if the SLC says repayments started on or before 6 April of the return year.
• Box 2: total Plan 1, 2 or 4 deductions from all PAYE jobs (P60 or adding up payslips).
• Box 3: total postgraduate loan deductions.
• Do not include overseas Direct Debit or voluntary payments in these boxes.
• If you changed jobs, add up payslips; a P60 will not show a previous employer's deductions.

Thresholds for the 2025-26 return

GOV.UK's annual repayment thresholds for 6 April 2025 to 5 April 2026 are: Plan 1 £26,065, Plan 2 £28,470, Plan 4 £32,745, Postgraduate Loan £21,000. You repay 9% of income above the threshold (6% for a Postgraduate Loan). Plan 5 repayments were not due until April 2026, so Plan 5 does not apply to the 2025-26 return. Thresholds for 2026-27 are higher, so do not use the figures on GOV.UK's current "what you pay" page for the return due 31 January 2027. Illustration with made-up income of £35,000 on Plan 2: (£35,000 − £28,470) × 9% = £587.70 before any amounts already deducted through PAYE.

Voluntary and overseas payments

GOV.UK says voluntary payments are separate and cannot be refunded; overseas Direct Debit payments are not taken into account in the return calculation, and you tell the SLC afterwards so HMRC can reduce your tax bill.

Related

Payments on account · Key dates 2026-27 · Do I need to file?

FAQ

Is the loan repayment a payments-on-account item? GOV.UK's payments-on-account page (read earlier) says the balancing payment includes student loan amounts for self-employed people; see the guide above.

Does Making Tax Digital change this? The page says compatible software shows estimates in quarterly updates, which are information only; the final charge replaces them. Our MTD guide covers who is affected.

What we could not verify

• A separate 2025-26 page for the 9%/6% rates: they come from GOV.UK's current "what you pay" page, which shows unchanged rates.
• The DfE announcement of 19 August 2025 (Plan 5 threshold applies from April 2026) was seen as a search excerpt only.
• Your own plan type and amounts; check your SLC account and payslips.

Sources (official)

• GOV.UK, Tell HMRC about a student or postgraduate loan in your tax return — https://www.gov.uk/guidance/tell-hmrc-about-a-student-loan-in-your-tax-return (read in full 17 October 2026; page last updated 12 May 2026)
• GOV.UK, Previous annual repayment thresholds — https://www.gov.uk/guidance/previous-annual-repayment-thresholds (table for 6 April 2025 to 5 April 2026, checked 17 October 2026)
• GOV.UK, 2025 to 2026: Student and Postgraduate Loan deduction tables — https://www.gov.uk/government/publications/sl3-student-loan-deduction-tables/2025-to-2026-student-and-postgraduate-loan-deduction-tables (checked 17 October 2026)
• GOV.UK, Repaying your student loan: What you pay — https://www.gov.uk/repaying-your-student-loan/what-you-pay (rates; the page now shows 2026-27 thresholds, which we do not cite)

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Not tax advice. See the disclosure.