CSLM19010 – SL repayments: borrower within SA: completion of the SA return
If a borrower of an income-contingent loan is liable to make
loan repayments and receives an SA return he or she is responsible
for including liability to Student Loan repayments as part of the
self assessment.
From April 2001 the SA return, (together with associated
notes), has been revised to allow the borrower to self - assess in
respect of CSL (Collection of Student Loans scheme). The borrower
does not have to calculate SA liability - HMRC can be asked to
calculate.
In particular there are specific entries as follows
- A question in the student loan section of the core SA return asks taxpayers to confirm whether or not they are repaying income-contingent loans. (See note 1 below)
- A second question in the student loan section of the core SA return asks for the amount of the Student Loan repayments deducted by the employer during the year. (See note 2 below)
- A section within the SA Calculation to determine
- The level of income, (both earned and unearned), upon which Student Loan repayments are to be calculated. (See note 3 below)
And
- The amount of Student Loan repayments due
Notes:
- This entry on the core SA return will be automatically checked
against the SL signal held on the taxpayer's SA record, (which you
can view in SA Function MAINTAIN RETURN SUMMARY). If there is a
discrepancy, for example, if the taxpayer ticks ‘No’
but the SA record indicates that the taxpayer is a Student Loan
borrower, it will be identified by means of SA Profile Reports
requested in the SA Risk Mart.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
- This entry on the core SA return will be automatically checked
against the Employments Framework. If the Student Loan deduction
shown on the return differs by more than the pre-defined value the
discrepancy will be identified by means of SA Profile Reports
requested in the SA Risk Mart.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
- Unearned income is taken into account in computing liability to
Student Loan repayments
only if the total amount of unearned income
exceeds £2,000
If unearned income
- Does not exceed £2,000 disregard unearned income
- Exceeds £2,000 include the total amount of unearned income (do not deduct £2,000)
For more information about
- Logging and capturing an SA return, see the SA Manual
- Action to take upon receipt of a return in respect of the year in which loan repayments cease, see CSLM19040
