Start of Income Contingent Loan Repayment

Answering some of the questions you might have

Why have I been sent this?

The letter you’ve been sent provides confirmation of the employment status HM Revenue and Customs (HMRC) currently holds for you. HMRC confirms your current employment status to us before you’re due to start repaying your loan(s).
Your employment status can be one of the following:

  • you’re currently in employment – HMRC will instruct your employer to deduct student loan repayments from your gross salary when your income is over the repayment threshold.
  • you’re currently self-employed – if you’re self-employed or in receipt of other income, you’ll need to complete a Self Assessment tax return.
  • you’re currently in receipt of benefits – you’re currently not required to make any student loan repayments when you’re in receipt of benefits such as Jobseekers Allowance, Incapacity Benefit or an Occupational pension.
  • you were overseas but have returned to the UK - HMRC has informed us that you’re now back in the UK and are employed or subject to self assessment. If this information is incorrect, and you’ll still be overseas for a period of three months or more, contact us to confirm this and we’ll update our records and reinstate your overseas repayment schedule.

My employment details are incorrect

The letter you have received represents the most up to date information we’ve received from HM Revenue and Customs (HMRC). If it’s incorrect, you don’t need to do anything right now, we’ll send you a Confirmation of Customer Details pack. When you receive this, complete and return it to us advising your current circumstances.

Do I need to tell my employer about my loan?

You shouldn’t need to take any action, as HMRC normally instruct your employer to take deductions from your gross salary when your income is over the repayment threshold. However, if you’re earning over the repayment threshold and no deductions are being taken from your salary after the date on your letter, check with your employer that they have received a Start Notification from HMRC.

If your employer hasn’t received a Start Notification, you’ll need to call us and give us your current employment details. We will contact HMRC with this information and they’ll issue another Start Notification to your employer.

Employment details you should provide

  • Name and address of your employer
  • Your employer’s PAYE Reference Number
  • Your payroll number
  • The date you started this employment.

Tel: 0300 100 0611 (Monday to Friday, 8am to 8pm) or if you live in Wales: 0300 100 0370 (Monday to Friday, 8am to 6pm).

What do I do if my circumstances change?

What you’ll need to do depends on the change.

Salary changes

You don’t need to do anything. Your employer will only deduct 9% of your gross salary over the repayment threshold.

Changing employer

Your previous employer should provide you with a P45 with box 5 marked with a ‘Y’; this instructs your new employer to begin making student loan deductions when your gross weekly/ monthly salary is over the repayment threshold. If you didn’t receive a P45, inform your new employer that you’re repaying your student loan. They should inform HMRC of your employment and should deduct repayments when your gross salary is over the repayment threshold.

You’re unemployed

You’ll be issued with a Confirmation of Customer Details pack, asking for details of your circumstances. No repayments are due while you’re unemployed.

You’re self-employed

You may be liable to make repayments through your Self Assessment tax return. Any repayment you are due to make will be made directly to HMRC.

I want to pay back more per month

You can make voluntary repayments directly to us at anytime. These would be in addition to any minimum repayments which are due and can’t be refunded.