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Tax careers – your future?
Find out about exciting career opportunities in the world of tax and how to get started.

Tax for student money advisers
How you can help students with tax issues: guidance and training materials for advisers.

  • Tax essentials
  • Working
  • Volunteering and training
  • Tax credits and benefits
  • Tax refunds
  • Types of student
  • Going abroad
  • Other income
  • Student loans

Plan 2 loans: What are employed ‘earnings’ for student loan repayments?

Your earnings for student loan purposes are calculated in the same way as they are for National Insurance contributions (NIC). This is not always the same figure as the earnings on which you pay tax. For example, NIC is not due on loans your employer makes to you and the GOV.UK website gives some guidance on tax and NIC differences where you receive tips or other company benefits. 

Pensions that you receive are not counted as earned income but as unearned income so may affect the amount you are required to pay back on your student loan if you complete a tax return. Normally pension contributions that you make through your payroll will be deducted from your pay for income tax purposes, but they will not reduce your pay for National Insurance purposes and hence will be included when calculating student loan repayments.

Any income from employment which you earn before the date you are due to start making repayments should not be taken into account in calculating the amount you have to pay.

Student loans

  • Plan 1 Student loans
  • Plan 2 Student loans
    • Plan 2 loans: How and when do I pay back my student loan?
    • I am an employee. How do I make Plan 2 student loan repayments?
      • Plan 2 loans: How do Pay As You Earn (PAYE) student loan repayments work?
      • Plan 2 loans: What are employed ‘earnings’ for student loan repayments?
      • Plan 2 loans: How are repayments calculated?
      • Plan 2 loans: I have earned less than the repayment threshold. Can I get a refund?
      • Plan 2 loans: What happens if I have more than one job?
      • Plan 2 loans: When can I opt out of PAYE repayments?
    • I have to fill in a tax return. How do Self Assessment Plan 2 student loan repayments work?
  • I have a Plan 1 and Plan 2 loan – how do my repayments work?
  • Postgraduate loans
  • What happens with my student loan if I go abroad?
  • Where can I find out more about student loan repayments?
  • Annotated Starter Checklist

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