How are Student Loans dealt with under Self Assessment?
The shake-up of the student finance system will begin in September 2023 and include:
- A freeze on university course fees: they remain at £9,250 for a further two years.
- Earning levels at which new borrowers start to repay their loans will be set at £25,000 until 2026-27 (currently £27,295), for those starting courses from September 2023.
- In June 2022, Higher Education Minister Michelle Donelan announced that the rate on loan repayments would be capped at 7.5%. So now the interest rate is the Retail Price Index (RPI) plus 3% and capped at 7.5%.
- The student loan repayment term will also be extended from 30 to 40 years for new borrowers from September 2023.
HMRC have created a factsheet to help agents in the preparation of Self Assessment tax returns where Student Loans need to be considered: See http://www.hmrc.gov.uk/leaflets/csla1.pdf
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