Student loan guide

Repaying the loan

Most of the time, this happens automatically.

If you get a job that pays over £15,000 each year, repayments are taken out of your wages at the same time as your tax and National Insurance (either each month or each week). The Student Loans Company will let you know about this before it happens, and if you earn less than £15,000, you won't pay anything.

Repayments don't start until the beginning of the tax year (6 April) after your course has ended. Your employer will take care of the paperwork, and you will only pay 9% of any money you earn above the £15,000 threshold.

Interest rates: Like all loans, there is some interest on a student loan. However, it's lower than the rate you would normally pay to a bank or building society.

Voluntary Payments loan guide.

There is also a way to pay your loan off even quicker, as well as having repayments deducted by your employer. You can make voluntary repayments of any amount of £5.00 or more direct to the Student Loans Company yourself, at any time, even if you do not earn above the threshold.

You can do this by sending a cheque to SLC, telling them your name and student reference number. If you do choose to make voluntary payments it will not stop your employer making deductions from your pay for the balance of your loan, but your employer will stop making deductions sooner.

You can get more information by contacting the SLC at www.slc.co.uk/

Being self-employed - loan guide

If you work for yourself, you obviously won't have an employer to do the paperwork for you. However, you will normally fill in an annual tax return (declaring your profits and expenses) and this means that HM Revenue & Customs can work out how much your repayments will be.

There is plenty of help for people filling in their tax returns on HM Revenue & Customs' website.

Working abroad - loan guide

If you work abroad, HM Revenue & Customs won't be able to take Student Loan repayments out of your wages. Instead, you will need to make the repayments straight to the Student Loans Company itself.

You can get more information from the Student Loans Company's website at www.slc.co.uk and you can read more about working abroad by clicking here.

• You can visit the Student Loans Company's website at www.slc.co.uk

• If your home base is in England or Wales, visit the Department for Education and Skills website
• For those who live in Scotland, you can find information on the Student Awards Agency for Scotland website
• If your home is in Northern Ireland, use the Department for Employment and Learning's website
• HM Revenue & Customs' website for students is at www.hmrc.gov.uk/students

Students at work

Paying your National Insurance

If you’re employed National Insurance is currently 11%, on earnings between £97.01 ,and £645 a week and then 1% after that, but it doesn't start until you earn at least £97 a week.

Holiday jobs

If you only work during the holidays, and you expect to earn no more than £5,035 in the tax year ending 5 April, just ask your employer for a Form P38(S). Fill this in and you won't have any tax taken out of your wages.

If you already have a part-time job during term time, you won't be able to use this form just for your holiday job. You will already be 'on the system', so your employer will take care of the paperwork to make sure you don't pay too much tax.

When you leave a job, your employer will give you a Form P45. You will need to keep this safe and give it to your next employer (just to make sure you don't pay too much tax in the future).

Paying tax on your savings

With a few exceptions (such as an ISA), savings interest is normally taxed automatically (at 20%). However, if you expect to earn less than £5,035 during the tax year ending 5 April, you can stop this happening by filling in Form R85 and giving it to your bank or building society.

Banks and building societies normally give you a Form R85 when you open an account.

If you have already paid too much tax on your interest, you can get a refund from HM Revenue & Customs by filling in Form R40.

• If you don't have your National Insurance number (or you can't find it), call the helpline on Tel 0845 91 57006 or 0845 91 55670
  
  
• If you have a tax reference number, you can find out which Tax Office will be dealing with you by clicking here
  
  
• If you don't have a tax reference number, you can call in to your nearest HM Revenue & Customs Enquiry Centre for assistance
  
  
• HM Revenue & Customs website for students is at www.hmrc.gov.uk/students
  
  
• If your employer is sponsoring you while you're studying full time find out if you can be paid tax and NIC free

Working Abroad

Paying your taxes

Normally, if you work abroad you are still treated as a tax resident of the UK. This basically means you will pay UK tax on anything you earn overseas. However, it also means you get the same tax allowances that you would receive in this country.

If your overseas employer taxes you as well (and you aren't able to claim it back directly from the foreign authorities), you will be credited for this in the UK.

Important: If you are already working in the UK, you will need to fill in Form P85 and send it to your Tax Office. This is to let HM Revenue & Customs know that you are going to be out of the country, and it may help in the future if you have any problems with foreign tax. If you are not already working, there is no need to fill in this form.

Student loan guide

If you work abroad, HM Revenue & Customs won't be able to take Student Loan repayments out of your wages automatically. Instead, you will need to make the repayments straight to the Student Loans Company itself.

You can get more information from the Student Loans Company's website at www.slc.co.uk and you can read more about student loans by clicking here.

The Home Office
Block C, Whitgift Centre
Croydon
CR9 1AT
Tel 0870 6067766

Being a Parent

• Child Tax Credit: This is available for parents with a household income below £55,220. The amount you receive depends on the number of children you have, their ages and whether or not they have any disabilities.
• Working Tax Credit: If you are a student parent regularly working more than 16 hours a week, this may help you top up a low income. You may also get help with childcare (if you are using a registered child minder

• Wages (from employment or self-employment
• Social Security benefits
• Bank and building society interest

• Student loans and grants (including those for childcare)

Special note for Student nurses:
Student nurses, or any health profession trainees, may receive NHS bursaries. You do not need to tell us about these if you are making a claim for Tax Credits.

Child Benefit

Whether or not you receive Tax Credits or any other support, you will still receive Child Benefit. This is a monthly payment for each child you have, and it isn't affected by income or savings.

You can check your entitlement to Child Benefit by going to: www.hmrc.gov.uk/childbenefit

• For information on Tax Credits, visit the Tax Credits website at www.hmrc.gov.uk/taxcredits or use the helplines listed below
  
  
• Tax Credits Helpline:
  Tel 0845 300 3900 (England, Scotland & Wales)
  Tel 0845 603 2000 (Northern Ireland)
  
  Textphone:
  Tel 0845 300 3909 (England, Scotland & Wales)
  Tel 0845 607 6078 (Northern Ireland)