Plan 2 loans: What information about my student loan do I need to fill in my tax return?
When filling in your tax return, you will need to include the total of any student loan repayments you have already made under PAYE. Also, although they usually get their information from HMRC, you might sometimes need to inform the Student Loans Company (SLC) direct of PAYE repayments you have made, for example, if there is a delay in passing information from HMRC to SLC.
Please note that student loan repayments are not tax deductible expenses on your self assessment tax return.
We would recommend you always keep your payslips.
If you have a single job in a tax year, your form P60 from your employer at the end of the year will show how much has been deducted in repayments.
But if you move from one job to another, the form P45 your old employer gives you does not show the total deductions made in that employment. Your old employer will only have ticked a box on the form P45 to indicate to your new employer that student loan repayments should continue being collected.
When you get to the end of the tax year, you will need to work out from the payslips from your old job how much your former employer deducted and add that figure to the amount shown on the form P60 from your new employer.
Again, let’s illustrate this with an example.
Example – Tom
Tom does some freelance designing websites, so he needs to fill in a tax return each year. But he also works part time for an employer – he changes job in August 2018.
His old employer deducted Plan 2 student loan repayments as follows:
April 2018 – repayment of £25
May 2018 – repayment of £22
June 2018 – repayment of £22
July 2018 – repayment of £26
In May 2019, his new employer gives him his form P60 for the tax year 2018/19 showing total student loan repayments of £213, but this figure does not include the amounts above from Tom’s old job.
When Tom completes his 2018/19 tax return, he has to add together the amounts deducted at both employments to find the total deductions to put on the form.
The total is £308 which is £25 + £22 + £22 + £26 + £213.
The £308 deducted comes off the total student loan repayment he owes for the year.
If Tom had not kept his payslips, he should be able to contact his old employer to ask for the information. However it is better to keep the information in the first place to avoid having to track it down later. He might also have problems getting hold of the details if, for example, his old employer had gone out of business.