Student loans - change to self-assessment

New tax return box.

HMRC has added a new box to its 2024/25 self-assessment tax return. You only need to use it if you’re employed, your employer deducts student or postgraduate loan repayments from your salary and you receive benefits in kind which your employer taxes through PAYE in their payroll (payroll benefits).

Why is the new box needed?

When HMRC calculates student loan repayments, it takes account of all your income which has been subjected to PAYE i.e. the figure which appears on your P60 and which must be declared on the employment pages of your self-assessment tax return (if you’re required to complete one).

The trouble is that the P60 figure includes payroll benefits which shouldn’t be taken into account for the purposes of working out student/postgraduate loan repayments. They must therefore be removed to ensure the calculation is correct. The new box is there for you to enter the amount of payroll benefits you receive so that HMRC will automatically deduct them when it makes its loan repayment calculations.

A new box has been added to the self-assessment return for 2024/25. You must use it if you’re an employee who makes student or postgraduate loan repayments and receives benefits in kind which your employer taxes through PAYE each time you’re paid salary.

Team #TaxSwag