Hello,

We have just started an employee who has recently left university and has received a student loan. Am I right in thinking he does not have to start repaying this until April next year? He was a temporary student worker previously (before this fiscal year) working just in his holidays, and I am entering him as a new employee with form P46.

Also, if he doesn't have to start repaying this loan till next April, do I tick the 2 'Student Loan' boxes on his maintenance page?

Have entered his tax code as 647L emergency, and NI table A as this is his first employment since this April. I hope this hasn't been answered before - I have scoured the forum :)

Many thanks,

Lyn

Thank you for that - though I think they don't pay until the following April after leaving university etc., and as you say, only if their earnings are over the threshold. Just in case anyone else is interested, this is what is says on HMRC page:

Students in higher education in the UK can get loans to help with their expenses while they're studying. The Student Loans Company makes the loans but HM Revenue & Customs (HMRC) collects the repayments.

Students start repaying their loan once they've left higher education and their income is more than a certain amount - the threshold. If their income is high enough, their repayments start in the April after they leave higher education.

The income threshold for starting to make repayments is £15,000 a year (£1,250 a month or £288 a week). Once an employee's income goes over the threshold, you deduct 9 per cent of their income that's over the threshold towards repaying their loan.

HMRC collects the repayments along with your employer PAYE (Pay As You Earn) deductions.

Thanks again for such a speedy response,

Lyn

HMRC are always contradicting themselves! Fortunately our employee will be just under the threshold until next year anyway, so he won't start paying it back just yet. But I will leave the boxes ticked - won't hurt him to start repaying earlier if he gets a wage rise, and he's a family member so we won't let him starve !!!