PART 1 General

Citation, commencement and extent_I1

1.—(1) These Regulations may be cited as the Education (Student Loans) (Repayment) Regulations 2009 and, subject to paragraphs (2) and (3), come into force on 6 April 2009.

(2) Regulations 2(2), 21 and Part 6 come into force on 1 September 2009.

(3) Regulations 15(5)(f) and 18 come into force on 21 December 2009.

(4) Subject to paragraphs (5) and (6), these Regulations extend to England and Wales only.

(5) Regulation 80(3) extends to Northern Ireland.

(6) These Regulations extend to all of the United Kingdom in so far as they impose any obligation or confer any power on HMRC, an employer or a borrower in relation to repayments under Parts 3 or 4 or on any other person in relation to the retention or production of information or records.

Revocation of previous Regulations_I2,I3

2.—(1) The Instruments listed in [^F1Schedule 1^F1] are revoked.

(2) Regulations 4(4), 93 and 94 of the Education (Student Support) (No. 2) Regulations 2008(4) and regulation 51 of the Assembly Learning Grants and Loans (Higher Education) (Wales) (No. 2) Regulations 2008(5) are revoked.

Interpretation_I4

3.[^F2—(1)^F2] In these Regulations—

“the 1970 Act” means the Taxes Management Act 1970 ( 6 ) as amended from time to time;

“the 1988 Act” means the Income and Corporation Taxes Act 1988 ( 7 ) as amended from time to time;

“the 1998 Act” means the Teaching and Higher Education Act 1998 ( 8 ) as amended from time to time;

“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003 ( 9 ) as amended from time to time;

“the 2005 Act” means The Income Tax (Trading and Other Income) Act 2005 ( 10 ) as amended from time to time;

“the 2007 Act” means the Income Tax Act 2007 ( 11 ) as amended from time to time;

“the 2008 Act” means the Sale of Student Loans Act 2008 ( 12 ) as amended from time to time;

[^F3 “the 2011 Support Regulations” means the Education (Student Support) Regulations 2011 ; ^F3]

[^F3 “the 2011 Welsh Regulations” means the Assembly Learning Grants and Loans (Higher Education) (Wales) (No.2) Regulations 2011 ( 6 ) ; ^F3]

[^F4 “ the 2016 Master's Degree Regulations ” means the Education (Postgraduate Master's Degree Loans) Regulations 2016 ^F4] ;

[^F5 “the 2017 Master’s Degree Wales Regulations” means the Education (Postgraduate Master’s Degree Loans) (Wales) Regulations 2017 ; ^F5]

[^F6 “ the 2018 Doctoral Degree Regulations ” means the Education (Postgraduate Doctoral Degree Loans and the Education (Student Loans) (Repayment) (Amendment) (No. 2) etc.) Regulations 2018 ; ^F6]

[^F7 “the 2018 Doctoral Degree Wales Regulations” means the Education (Postgraduate Doctoral Degree Loans) (Wales) Regulations 2018 ; ^F7]

“academic year” means the period from 1 September in any year to 31 August of the following year, regardless of whether this is, in fact, the period over which a borrower’s course runs;

[^F8 “Access to HE Diploma” means a qualification which is specifically designed to prepare persons for study at university; ^F8]

“the Authority”–

[^F12 “borrower” means—

[^F14 “designated course” means a course designated by or under the 2011 Support Regulations; ^F14]

[^F14 “eligible borrower” means an eligible student under regulation 4 of the 2011 Support Regulations; ^F14]

“eligible employment” has the same meaning as in the Teachers’ Regulations;

“eligible teacher” means a teacher with a student loan made when that person was resident in England or Wales who was eligible for a reduction in respect of that loan under the Teachers’ Regulations;

“HMRC” means Her Majesty’s Revenue and Customs;

“loan purchaser” includes any person who has entered into transfer arrangements with the Authority or another loan purchaser or both and who presently owns one or more student loans[^F15 or postgraduate ^F16 ... degree loans ^F15] made pursuant to Regulations made under section 22 of the 1998 Act;

“National Insurance number” means the National Insurance number allocated within the meaning of the Social Security (Contributions) Regulations 2001 ( 13 );

“overseas provisions” means the requirements of these Regulations in Part 5;

“overseas borrowers” means borrowers making or due to make repayments in accordance with Part 5;

“part-time” employment means employment where the contract of employment requires the employee to work for less than the whole working week;

[^F17 “post-2012 student loan” has the meaning given in paragraph (2) ^F17]

[^F18 “ postgraduate degree loan ” means the total outstanding—

excluding any interest, penalties or charges payable under Part 3 or 4, and also has the meaning given to it in regulation 7;^F18]

[^F23 “ postgraduate degree loan borrower ” means a person—

[^F24 “relevant percentage difference in average earnings” means the percentage difference between the average earnings in periods 1 and 2, as published on the website of the Office for National Statistics on the last day of June that follows period 2, where—

“repayment” means repayment of a student loan[^F25 or a postgraduate ^F26 ... degree loan ^F25] ;

^F27...

[^F28 “repayment threshold” has the meaning given in regulation 29(7) to (10); ^F28]

“repayment threshold year” means the period from 6 April to 5 April of the following year;

[^F29 “Scottish student loan” means a student loan within the meaning given in regulation 6; ^F29]

“Secretary of State” includes any person exercising functions on behalf of a Secretary of State pursuant to section 23(4) of the 1998 Act;

[^F30 “ student loan ” means the total outstanding principal, interest, penalties and charges owed by a person—

excluding any interest, penalties or charges payable under Part 3 or 4, and also has the meanings given to it in regulations 6 and 7;^F30]

[^F32 “student loan borrower” means a person—

and also has the meaning given to it in regulation 6;^F32]

“the Taxes Acts” has the same meaning as it has in the 1970 Act;

“tax year” –

[^F35 “tax year 2009–10” for the purpose of Part 3 means the tax year beginning on 6 April 2009 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way); ^F35]

“Teachers’ Regulations” means the Education (Teacher Student Loans) (Repayment etc) Regulations 2003 ( 14 );

“transferred loan” includes loans subject to further transfer arrangements;

“the tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure (Upper Tribunal) Rules 2008( 15 ), the Upper Tribunal; and

“Welsh Ministers” includes any person exercising functions on their behalf pursuant to section 23(4) of the 1998 Act.

[^F36 (2) In these Regulations a “post-2012 student loan” means any student loan paid under the [^F37 2011 Support Regulations, the 2011 Welsh Regulations or the Further Education Loans Regulations 2012 ^F37] or any subsequent Regulations made by the Secretary of State or the Welsh Ministers (as the case may be) under section 22 of the 1998 Act [^F38 other than the 2016 Master's Degree Regulations, [^F39 the 2017 Master’s Degree Wales Regulations, the 2018 Doctoral Degree Regulations or the 2018 Doctoral Degree Wales Regulations ^F39,F38]] and taken out by a borrower in respect of a course which that borrower begins on or after 1 September 2012 and which is not—

(a)a full-time honours degree course beginning on or after 1 September 2012 which, disregarding any intervening vacation, a student begins to attend immediately after ceasing to attend a full-time course mentioned in paragraph 2, 3 or 4 of Schedule 2 to the 2011 Support Regulations or a full-time foundation or ordinary degree course, which started before 1 September 2012, having achieved a qualification; or

(b)one to which the borrower’s status as a student eligible for support under Regulations made under section 22 of the 1998 Act has been transferred from another course which the borrower began before 1 September 2012 and where the transfer takes place on or after 1 September 2012 and it is from a full-time course to a full-time course.^F36]

Application: general_I5

4. These Regulations apply to repayments of student loans[^F40 and postgraduate ^F41... degree loans^F40] made under the 1998 Act.

Wales_I6

5.—(1) Subject to paragraph (2), these Regulations apply to student loans[^F42 and postgraduate ^F43... degree loans^F42] made or deemed made by the Welsh Ministers under section 22 of the 1998 Act.

(2) Unless the Welsh Ministers have determined in relation to any student loan or [^F44postgraduate ^F45... degree^F44] loan made or deemed made by them under section 22 of the 1998 Act that repayments are to be collected by HMRC under Parts 3 and 4 and have given notice of this to the Secretary of State and the borrower, [^F46no provision of these Regulations made by virtue of section 22(5) of the 1998 Act will apply^F46] .

Scotland_I7

6.—(1) If the Scottish Ministers have determined that the repayments of student loans made under the Education (Scotland) Act 1980 will be collected by HMRC under Parts 3 and 4 of these Regulations, they must give notices to HMRC and the borrower in accordance with regulation 15.

(2) Where the Scottish Ministers have given notices in accordance with regulation 15(3)(a) or (b), Parts 3 and 4, and the provisions of Parts 1 and 2 so far as they relate to Parts 3 and 4, will apply to those student loans in the same way as they apply to student loans under the 1998 Act.

(3) In the application of these Regulations to loans made under the Education (Scotland) Act 1980—

“ [^F47 student loan borrower ^F47] ” means a person to whom the Scottish Ministers or Secretary of State have lent money pursuant to Regulations made under section 73(f) of the Education (Scotland) Act 1980 and who has not received a notice from the Scottish Ministers that it has been repaid in full or cancelled;

“the Authority” means the Scottish Ministers (other than in regulations 3 and 11) and includes any person exercising functions on behalf of the Scottish Ministers pursuant to section 73A(4) of the Education (Scotland) Act 1980 ; and

“student loan” means the total outstanding principal, interest and charges owed by the borrower to the Scottish Ministers pursuant to Regulations made under section 73(f) of the Education (Scotland) Act 1980 , excluding any interest, penalties or charges payable under Part 3 or 4.

Application to transferred loans in England and Wales_I8

7.—(1) Where these Regulations apply to a transferred loan—

^F48 “the Authority” means, for the purpose of those regulations listed in paragraph (2), the Secretary of State or Welsh Ministers acting on behalf of the loan purchaser (regardless of whether any person is also exercising functions on behalf of the Secretary of State or Welsh Ministers pursuant to section 23(4) of the 1998 Act); ...

[^F49 “ postgraduate degree loan ” means, subject to any provisions of transfer arrangements, the total outstanding—

[^F54 “ student loan ” means, subject to any provisions of transfer arrangements, the total outstanding principal, interest, penalties and charges owed by a person to a loan purchaser pursuant to—

(2) The regulations referred to in paragraph (1) are: regulations 15 to 20, 22 to 27, and 73 to 79.

Service by post or electronic communication_I9

8.—(1) Any notice or other document which is authorised or required to be given, served or issued under these Regulations may be sent by [^F56post or by an electronic format^F56] .

(2) In particular, any notice which the Authority may give to HMRC may be transmitted electronically, and for these purposes a notice is transmitted electronically where the content and form of a notice is sent and received by electronic media between computer systems operated by the Authority and HMRC respectively.

PART 2 Provisions Applicable to all Repayments

Interpretation_I10

9.—(1) In this Part—

“2006 Support Regulations” means the Education (Student Support) Regulations 2006 ( 16 ).

“the 2006 Welsh Regulations” means the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2006 ( 17 );

[^F57 “course start date” means 1 January, 1 April, 1 July or 1 September of the calendar year where the first day of the course is on or after 1 January and before 1 April, on or after 1 April and before 1 July, on or after 1 July and before 1 August or on or after 1 August and on or before 31 December, respectively; ^F57]

“date of receipt” in relation to a repayment is to be construed in accordance with regulation 17;

“disability–related benefit” means long-term incapacity benefit or short-term incapacity benefit at the higher rate, severe disablement allowance, disability living allowance, industrial injuries benefit and disability working allowance, all payable under the Social Security Contributions and Benefits Act 1992 ( 18 ), [^F58 personal independence payment under Part 4 of the Welfare Reform Act 2012 , ^F58][^F59 armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 , ^F59] or the amount of any disability premium and severe disability premium included in the applicable amount in calculating the income support payable under the Income Support (General) Regulations 1987 ( 19 );

“end-on course” means—

“Student Support Regulations” means–

(2) The courses mentioned in this paragraph are a course for the Diploma of Higher Education, and a course for the Higher National Diploma or Higher National Certificate of–

(a)the Business & Technician Education Council; or

(b)the Scottish Qualifications Authority.

Functions of HMRC_I11

10.—(1) HMRC must collect repayments from borrowers (whether or not any loan of the borrower is a transferred loan) in accordance with Parts 3 and 4, and the provisions of section 1 of the 1970 Act apply for those purposes as they apply for the purposes of income tax.

(2) HMRC must, at such time and in such manner as the Treasury may direct, account for, and pay to, the Secretary of State the sums estimated by HMRC (in the manner so directed) to have been collected by it as repayments in accordance with Parts 3 and 4.

(3) HMRC must account for and pay to the Secretary of State such sums as are referred to in paragraph (2) regardless of whether the Secretary of State is entitled to retain such repayments or receives them on behalf of a loan purchaser.

(4) Payments to the Secretary of State do not include any interest, penalties or charges payable under Part 3 or 4 and HMRC will cause any such sums which it recovers to be paid, at such times and under such regulations as the Treasury may from time to time prescribe, to accounts to be entitled “The Account of Her Majesty’s Exchequer”, at the Bank of England and the sums so paid form part of the Consolidated Fund.

Transfer of repayments due to a loan purchaser_I12

11.—(1) The Authority must pay to a loan purchaser at such time and in such amount as may be agreed with the loan purchaser any sums which are paid directly to the Authority in connection with transferred loans whether under this Part or Part 5.

(2) The Authority may make aggregate payments to a loan purchaser in respect of all or a number of transferred loans owned by that loan purchaser.

Officers of Revenue and Customs_I13

12. Any legal proceedings or administrative act authorised by or done for the purposes of these Regulations begun by an officer of Revenue and Customs may be continued by another officer; and any officer may act for any other division or area.

Penalties in relation to Parts 3 and 4_I14

13.—(1) Section 98 of the 1970 Act (special returns etc) applies for the purposes of repayments under Parts 3 or 4 as if any reference in that section to a provision in the Table is a reference to a provision in those Parts 3 or 4 with the exception of regulations 30, 33, 60 and 61.

[^F62 (2) Schedule 38 to the Finance Act 2012 (Tax Agents: Dishonest Conduct) applies for the purpose of repayments under Part 3 or 4 as it applies for the purposes of income tax.^F62]

(3) For tax years—

(a)ending on or before 5 April 2008, sections 100 (determination of penalties by officer of HMRC), 100A (provisions supplementary to section 100) and 100B (appeals against policy determinations) of the 1970 Act apply to the penalties set out in regulation 40(3) in connection with repayments under Part 3 as they apply in connection with income tax;

(b)commencing on or after 6 April 2008, where the date on which the return is due to be filed is on or after 6 April 2009, Schedule 24 to the Finance Act 2007(22) (penalties for errors) applies in relation to the assessment of penalties and appeals against the assessment of penalties in connection with Part 3 as it applies to penalties in connection with income tax.

(4) Sections 100 (determination of penalties by officer of Revenue and Customs), 100A (provisions supplementary to section 100) and 100B (appeals against penalty determinations) of the 1970 Act apply to penalties other than those outlined in regulations 40(3) and 40(4) in connection with repayment under Part 3 and all penalties under Part 4 as they apply to penalties in connection with income tax.

(5) Section 100C (penalty proceedings before the tribunal), 100D (penalty proceedings before court), 102 (mitigation of penalties), 103(3) and (4) (time limit for penalties), 103A (interest on penalties), 104 (savings for criminal proceedings) and 105 (evidence in cases of fraudulent conduct) of the 1970 Act apply to penalties in connection with repayments under Part 3 or 4 as they apply in connection with income tax.

(6) Sections 112 to 115A of and Schedule 3A to the 1970 Act (documents) apply to assessments, returns or other documents made, required, issued, served, sent or lodged for the purposes of or in connection with repayments under Parts 3 or 4 as they apply to documents for the purposes of or in connection with income tax.

(7) Section 118(2) of the 1970 Act (failure to act within limited time) applies in relation to anything required to be done under Parts 3 or 4 as it applies in relation to anything required to be done under that Act.

(8) For the purposes of these Regulations, the amount of a repayment covered by any assessment under Part 3 is not deemed finally determined until that assessment can no longer be varied, whether by the tribunal on appeal or by the order of any Court.

Interest and penalties_I15

14.—(1) Interest and penalties charged under Parts 3 or 4 are not added to the principal outstanding, are not part of the loan, and payments of such interest or penalties are not credited against the principal outstanding.

(2) Any repayments received by the Authority or loan purchaser will be applied in reduction or satisfaction of the liabilities of a borrower in the following order:—

(a)first, any outstanding penalties, costs, expenses or charges under regulations 24 or 25;

(b)second, any outstanding penalties, costs, expenses or charges under Part 5;

(c)third, any outstanding interest;

(d)fourth, any outstanding principal, which will be reduced or satisfied from the date of receipt.

Timing of repayments: general_I16,I17

15.—(1) A borrower may repay all or any part of a student loan[^F63 or a postgraduate ^F64... degree loan^F63] to the Authority or loan purchaser at any time, by making direct payments to the Authority.

(2)[^F65 Subject to paragraphs [^F66 (2A) and (2B)^F66] ,^F65] a [^F67student loan borrower^F67] is not required to repay any part of the student loan before the start of the following tax year commencing on 6 April after a [^F67student loan borrower^F67] ceases to be eligible for financial support under Regulations made pursuant to section 22 of the 1998 Act[^F68 in respect of a student loan^F68] , whether by reason of having completed that course or otherwise.

[^F69 (2ZA) Subject to paragraph (2C) a postgraduate degree loan borrower is not required to repay –

(a)any part of a postgraduate master's degree loan, before the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for a loan under Part 1 of the 2016 Master's Degree Regulations or Part 4 of [^F70 the 2017 Master’s Degree Wales Regulations^F70] , whether by reason of having completed that course or otherwise;

(b)any part of a postgraduate doctoral degree loan, until the earlier of—

(i)the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for a loan under Part 1 of the 2018 Doctoral Degree Regulations [^F71 or Part 4 of the 2018 Doctoral Degree Wales Regulations^F71] , whether by reason of having completed that course or otherwise; or

(ii)the start of the following tax year commencing on 6 April after the fourth anniversary of the course start date.^F69]

[^F72 (2A)^F73 ... Where a borrower takes out a post-2012 student loan in relation to a part-time course, the borrower is not required to repay any part of that post-2012 student loan until the earlier of—

(a)the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for financial support under Regulations made pursuant to section 22 of the 1998 Act whether by reason of having completed that course or otherwise; or

(b)the start of the following tax year commencing on 6 April after the fourth anniversary of the course start date.

(2B)^F74 ... A borrower who takes out a post-2012 student loan and who changes their mode of study between full-time and part-time study is required to repay—

(a)where there is a change from a full-time course to a part-time course, in accordance with paragraph (2A);

(b)where there is a change from a part-time course to a full-time course before the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2);

(c)where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2A).

[^F75 (2C) A borrower is not required to repay any part of the postgraduate degree loan under paragraph (2ZA) before 6 April 2019.^F75]

(2D) For the purposes of paragraphs (2), (2A) and (2B), an original course and a top-up course are treated as one course where—

(a) “original course” means a course which, disregarding any intervening vacation, a student attended immediately before a top-up course; and

(b) “top-up course” means—

(i)a full-time honours degree course beginning after 1 September 2012 which, disregarding any intervening vacation, a student begins immediately after ceasing to attend a full-time course mentioned in paragraph 2, 3 or 4 of Schedule 2 to the 2011 Support Regulations or a full-time foundation or ordinary degree course, which started on or after 1 September 2012, having achieved a qualification; or

(ii)a part-time honours degree course beginning after 1 September 2012 which, disregarding any intervening vacation, a student begins immediately after ceasing to attend or undertake a part-time higher education course mentioned in paragraph 2, 3 or 4 of Schedule 2 to the 2011 Support Regulations or a part-time foundation or ordinary degree course, which started on or after 1 September 2012, having achieved a qualification.^F72]

(3) Subject to paragraphs (7), (8) and regulation 16, the Authority must notify the borrower and HMRC of—

(a)the first or, as the case may be, next tax year in respect of which the borrower may be required to make repayments under Part 3;

(b)the date on and after which a borrower may be required to make repayments by deductions from earnings under Part 4;

(c)where the borrower has given the Authority notification in accordance with regulation 16(3), the tax year in respect of which the borrower will cease to be required to make repayments under Part 3;

(d)the tax year in which the borrower will cease to be required to make repayments under Part 3 because of the occurrence of a relevant event; and

(e)the date on and after which a borrower will cease to be required to make repayments by way of deduction from earnings under Part 4 because of the occurrence of a relevant event.

(4) For the purposes of paragraph (3)(d), a “relevant event” occurs when—

(a)the loan has been repaid in full to or via the Authority;

(b)an amount sufficient to repay the balance owing to the Authority or loan purchaser is likely to be received by HMRC under Part 4 or by the Authority directly from overseas borrowers by 30 April in the tax year immediately following the tax year in which the notice is issued;

(c)the loan has been cancelled; or

(d)the borrower becomes an eligible teacher in full-time eligible employment.

(5) For the purposes of paragraph (3)(e), a ‘relevant event’ occurs when—

(a)the loan has been repaid in full to or via the Authority;

(b)an amount sufficient to repay in full the balance owing to the Authority or loan purchaser is likely to be received by HMRC under Parts 3 and 4 and by the Authority directly from overseas borrowers by the date given in the notice;

(c)the loan has been cancelled;

(d)the borrower has notified the Authority in accordance with regulation 16(3);

(e)the borrower becomes an eligible teacher in full-time eligible employment; or

(f)the borrower has undertaken to repay the loan in full after the date given in the notice in accordance with regulation 18 and meets the criteria of that regulation.

(6) The Authority must not issue a notice under paragraph (3)(d) after the end of the calendar year during which the tax year specified in the notice ends.

(7) Where the Authority has notified a borrower and HMRC that repayments under Parts 3 and 4 must no longer be made but at a later date it appears to the Authority that the student loan[^F76 or postgraduate ^F77... degree loan^F76] has not been fully repaid, then a further notice may be given in accordance with paragraph (3).

(8) No notice need be given under paragraph (3)(a) or (b) if the borrower’s loan does not exceed £120.

(9) Any notice which the Authority is required to give to HMRC pursuant to this regulation may be given in respect of one or more than one borrower, and in respect of each borrower, the Authority must provide the particulars required in paragraph (3).

(10) Any notice given by the Authority pursuant to the Education (Student Loan) (Repayment) Regulations 2000 prior to the coming into force of these Regulations is to be treated as having been given pursuant to these Regulations.

Timing of Repayment: teachers and eligible teachers_I18

16.—(1) Where a borrower is an eligible teacher in full-time employment the Authority must not issue a notice under regulation 15(3)(a) to (d).

(2) Regulation 15(3) applies, however, if a borrower—

(a)ceases to be eligible for a reduction under the Teachers’ Regulations; or

(b)a borrower who is an eligible teacher in full-time eligible employment changes to part-time eligible employment.

(3) A borrower—

(a)whose student loan was made in connection with undertaking a course for the initial training of teachers, other than a course leading to a first degree; and

(b)who has notified the Authority in writing of a desire not to repay that student loan during any period in which the borrower is also required to repay a loan made under the Education (Student Loans) Act 1990(23) or the Education (Student Loans) (Northern Ireland) Order 1990(24),

^F78is not ... required to repay any part of the student loan during any such period.

(4) A borrower who is an eligible teacher in full-time eligible employment is not required to repay any part of a student loan during the period in which the borrower remains eligible under regulation 3(1) of the Teachers’ Regulations.

(5) A borrower who is an eligible teacher in part-time employment is not required to repay the proportion of any part of a student loan for which the borrower is eligible for a reduction under the Teachers’ Regulations during the period in which the borrower remains eligible under regulation 3(1) of the Teachers Regulations.

(6) Where under paragraph (1) the Authority is not required to give notices under regulation 15(3), a borrower may be required by the Authority to repay the student loan in such manner and over such period as in all the circumstances seems appropriate.

Date of repayment_I19

17. For the purposes of this Part, repayment will be considered to have been paid by the borrower and received by the Authority or loan purchaser as follows:—

(a)where an amount is paid by the borrower directly to the Authority, or by direct debit under regulation 18, a repayment of that amount is considered to have been received on the date on which the amount is, in fact, received;

(b)where HMRC have notified the Authority that an amount has become payable to it in respect of a tax year under Part 3, a repayment of that amount is considered to have been received by the Authority on 31 January following the tax year, whether or not the borrower has, in fact, paid any or all of that amount to HMRC;

(c)where an amount is deducted by an employer under Part 4 [^F79in respect of the tax year ending on 5 April 2019 or any previous tax year^F79] , that amount must be aggregated with all other amounts deducted in the same tax year and repayments of the aggregate amount will be considered to have been received by the Authority in equal instalments received on the days during the tax year which are–

(i)the last days of a month;

(ii)days after the date on which the Authority has given notice under regulation 15(3)(b) that payment should be deducted; and

(iii)^F80days before the date on which the Authority has given notice under regulation 15(3)(e) that payment should cease to be deducted; ...

[^F81 (ca)where an amount is deducted by an employer under Part 4 in respect of the tax year beginning on 6 April 2019 or any subsequent tax year, a repayment of that amount is considered to have been received by the Authority on—

(i)the day on which it was deducted by the employer; or

(ii)where an adjustment is made in relation to the deduction, [^F82 the day on which that adjustment is made or the last day of the relevant tax year if the adjustment is made outside the relevant tax year^F82] ; and^F81]

(d)for the purposes of transferred loans, payment to the loan purchaser by the borrower is considered to have been received on the same day as payment is considered to have been received by the Authority in accordance with this regulation.

Direct debit repayment_I20

18.—(1) This regulation[^F83 applies^F83] if—

(a) the borrower gives notice to the Authority of an intention to repay the outstanding balance [^F84 of a student loan or a postgraduate ^F85 ... degree loan (“the relevant loan”) ^F84] in accordance with this regulation;

(b)the Authority is satisfied that the borrower is likely to repay all of the outstanding balance of [^F86the relevant loan^F86] under Part 4 within 23 months of that notice; and

(c)the borrower has not previously ceased making payments under this regulation without [^F87the relevant loan^F87] having being repaid in full, unless such cessation was agreed by the Authority.

(2) Where this regulation applies, subject to paragraphs (3) and (4), the Authority must give notice to HMRC, in accordance with regulation 15(3)(e) that deductions [^F88in respect of the relevant loan^F88] from the borrower’s earnings are to cease from the date specified in the notice.

(3) The borrower must complete and return to the Authority in the format required by the Authority from time to time a standing instruction to the borrower’s bank authorising monthly lump sum payments to the Authority in such sum as is required to ensure payment of the outstanding balance [^F89of the relevant loan^F89] within the next 23 months.

(4) The first date on which a bank, authorised by a borrower to make a payment, makes a payment must fall no later than 30 days after the date which the Authority specifies in a notice pursuant to regulation 15(3)(e).

(5) If at any time the instruction to the borrower’s bank—

(a)is refused on any second presentation by the Authority; or

(b)is cancelled or otherwise altered by the borrower without the permission of the Authority given under paragraph (6),

then the Authority must give notice of any refusal or failed payment to the borrower and must give a notice to HMRC and to the borrower pursuant to regulation 15(3) that deductions [^F90in respect of the relevant loan^F90] from earnings are to recommence unless regulation 15(8) would otherwise apply.

(6) The borrower may, at any time, agree with the Authority that repayment in accordance with this regulation will cease, and thereafter the Authority must give a notice to HMRC and to the borrower in accordance with regulation 15(3) that repayment through the tax system is to recommence unless regulation 15(8) would otherwise apply.

(7) The Authority may suspend or delay the operation of paragraph (5) if and to the extent it appears to the Authority expedient to do so, taking into account the causes of the failed payment and the Authority must notify the borrower of any suspension or delay as the case may be.

(8) This regulation will not affect any voluntary repayments made by a borrower by any method pursuant to regulation 15(1).

[^F91Division of repayment

18A.—(1) Subject to paragraph (2),^F92] where a borrower has a post-2012 student loan and a student loan which is not a post-2012 student loan [^F93 nor a Scottish student loan^F93] and it is time for the borrower to repay both loans in accordance with regulation 15, the repayment will be divided between the loans so that—

(a)the part of the repayment relating to income above the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the post-2012 student loan; and

(b)the part of the repayment relating to income above the repayment threshold in regulation 29(7) up to and including the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the student loan which is not a post-2012 student loan [^F93 nor a Scottish student loan^F93] .

[^F94 (1A) Subject to paragraph (2), where a borrower both has a student loan which is neither a post-2012 student loan nor a Scottish student loan, and has a Scottish student loan, and it is time for the borrower to repay both loans in accordance with regulation 15, the repayment will be divided between the loans so that—

(a)the part of the repayment relating to income above the repayment threshold in regulation 29(8B) is to reduce the outstanding balance of the Scottish student loan; and

(b)the part of the repayment relating to income above the applicable repayment threshold in regulation 29(7) up to and including the repayment threshold in regulation 29(8B) is to reduce the outstanding balance of the student loan which is not a post-2012 student loan nor a Scottish student loan.

(1B) Subject to paragraph (2), where a borrower has a post-2012 student loan and has a Scottish student loan, and it is time for the borrower to repay both loans in accordance with regulation 15, the repayment will be divided between the loans so that—

(a)the part of the repayment relating to income above the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the post-2012 student loan; and

(b)the part of the repayment relating to income above the repayment threshold in regulation 29(8B) up to and including the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the student loan which is a Scottish student loan.

(1C) Subject to paragraph (2), where a borrower has a student loan which is neither a post-2012 student loan nor a Scottish student loan, and has a post-2012 student loan, and has a Scottish student loan, and it is time for the borrower to repay all three loans in accordance with regulation 15, the repayment will be divided between the loans so that—

(a)the part of the repayment relating to income above the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the post-2012 student loan;

(b)the part of the repayment relating to income above the repayment threshold in regulation 29(8B) up to and including the repayment threshold in regulation 29(8) is to reduce the outstanding balance of the student loan which is a Scottish student loan; and

(c)the part of the repayment relating to income above the applicable repayment threshold in regulation 29(7) up to and including the repayment threshold in regulation 29(8B) is to reduce the outstanding balance of the student loan which is not a post-2012 student loan nor a Scottish student loan.^F94]

[^F95 (2) For the purposes of repayments under Part 4 in respect of the tax year beginning on 6 April 2019 or any subsequent tax year, the references in [^F96 paragraphs (1) to (1C)^F96] to the repayment thresholds in regulations 29(7) [^F97 , 29(8) and 29(8B)^F97] are to be read as references to an apportionment of those thresholds in respect of each month of the tax year in question, calculated by dividing the relevant repayment threshold into twelve equal parts.^F95,F91]]

Cancellation_I21

19.[^F98—(1) This regulation applies where a borrower is not in breach of any obligation to repay any of the following—

(a)a loan mentioned in paragraph (4);

(b)where the borrower is a student loan borrower—

(i)a student loan under the overseas provisions;

(ii)a student loan under regulation 18;

(iii)a postgraduate ^F99... degree loan;

(c)where the borrower is a postgraduate ^F99... degree loan borrower—

(i)a postgraduate ^F99... degree loan under the overseas provisions;

(ii)a postgraduate ^F99... degree loan under regulation 18;

(iii)a student loan.^F98]

(2) In this regulation “post-2006 student loan” means any student loan paid under the 2006 Support Regulations or the 2006 Welsh Regulations or any subsequent Regulations made by the Secretary of State or the Welsh Ministers (as the case may be) under section 22 of the 1998 Act[^F100 , other than a post-2012 student loan [^F101 or a postgraduate ^F99 ... degree loan ^F101] , ^F100] and taken out by—

(a)a borrower who takes out a student loan for the first time in respect of an academic year beginning on or after 1 September 2006; or

(b)a borrower who takes out a student loan in respect of a course which satisfies the following conditions–

(i)it begins on or after 1 September 2006;

(ii)it is not an end-on course following on from a course which the borrower began before 1 September 2006; and

(iii)it is not one to which the borrower’s status as a student eligible for support under Regulations made under section 22 of the 1998 Act has been transferred from another course which the borrower began before 1 September 2006.

(3) The Authority or loan purchaser must cancel the borrower’s liability to repay the student loan[^F102 or the postgraduate ^F99... degree loan^F102] when one of the following occurs—

(a)the borrower dies;

(b)the borrower receives a disability-related benefit and because of the disability is permanently unfit for work;

(c)^F103in the case of post-2006 student loans, the 25^th anniversary of the date on which the borrower became liable to repay the student loan; ...

(d)^F105,F106in the case of student loans which are not post-2006 student loans[^F104 and not post-2012 student loans^F104] , the borrower reaches the age of 65 ... ...

[^F107 (e)in the case of post-2012 student loans, the 30^th anniversary of the date on which the borrower became liable to repay the student loan^F107]^F108[^F109 ...

(f)in the case of post-2012 student loans for Access to HE Diplomas where a borrower has achieved at least one Access to HE Diploma and the Authority is satisfied that the borrower, who was an eligible borrower, completes a designated course;^F109][^F110 or^F110]

[^F111 (g)in the case of a postgraduate ^F99... degree loan, the 30th anniversary of the date on which the borrower became liable to repay the postgraduate ^F99... degree loan.^F111]

(4) For the purposes of paragraph (1) the loans are loans made under the Education (Student Loans) Act 1990, the Education (Student Loans) (Northern Ireland) Order 1990, the Education (Scotland) Act 1980 and Regulations made under it, and the Education (Student Support) (Northern Ireland) Order 1998(25) and Regulations made under it.

(5) The cancellation of the borrower’s liability to repay the student loan[^F112 or the postgraduate ^F99... degree loan^F112] under paragraph (3) does not affect the liability of the borrower to make repayments under Part 3 subject to and in accordance with that Part in respect of any tax year—

(a)in the case of cancellation under paragraph (3)(a), during which the borrower was alive; and

(b)in any other case, preceding the tax year during which the student loan[^F112 or the postgraduate ^F99... degree loan^F112] was cancelled.

(6) The cancellation of a borrower’s liability to repay the student loan[^F113 or the postgraduate ^F99... degree loan^F113] under paragraph (3) does not affect the employer’s liability to make deductions under Part 4 subject to and in accordance with that Part in respect of any earnings period ending before the date of cancellation.

Refunds_I22

20.—(1) Where the Authority has received a repayment either directly from the borrower or from HMRC under Part 4—

(a)which results in the student loan[^F114 or the postgraduate ^F115... degree loan^F114] being repaid in full, or

(b)when the student loan[^F116 or the postgraduate ^F115... degree loan^F116] has already been repaid in full,

the Authority must refund to the borrower any amount not required to repay the loan in full together with interest calculated [^F117in accordance with paragraph (1A).^F117]

[^F118 (1A) Interest is calculated—

(a)for a student loan which is not a post-2012 student loan on or after 18 June 2012 up to and including 5 April 2016, as if it were the principal of a student loan outstanding from the date of receipt of the repayment to the date of the refund;

(b)for a student loan which is not a post-2012 student loan on or after 6 April 2016, as if it were the principal of a student loan, which is not a post-2012 student loan, outstanding from the date of receipt of the repayment to the earlier of—

(i)the end of a period 60 days after the Authority issues a notice; or

(ii)the date on which the Authority makes the refund to the borrower;

after which period no interest will accrue;

(c)for a post-2012 student loan, as if it were the principal of a student loan outstanding, to which the interest rate is limited to that in regulation 21A(9), from the date of receipt of the repayment to the earlier of—

(i)the end of a period 60 days after the Authority issues a notice ; or

(ii)the date on which the Authority makes the refund to the borrower;

after which period no interest will accrue;

[^F119 (d)for a postgraduate ^F115... degree loan, as if it were the principal of a postgraduate ^F115... degree loan, outstanding from the date of receipt of the repayment to the earlier of—

(i)the end of a period of 60 days after the Authority issues a notice, or

(ii)the date on which the Authority makes the refund to the borrower,

after which period no interest will accrue.^F119]

(1B) The notice to the borrower under paragraph (1A)(b)(i) [^F120 , (c)(i) and (d)(i)^F120] must state that interest will accrue on any overpayment from the date of receipt of the repayment, under paragraph (1), until the earlier of—

(a)the end of a period 60 days after the Authority issues the notice; or

(b)the date on which the Authority makes the refund to the borrower;

after which period no interest will accrue.^F118]

(2) Where the Authority is considered to have received a payment from HMRC under Part 3 in respect of a tax year –

(a)which results in the student loan[^F121 or the postgraduate ^F115... degree loan^F121] being repaid in full, or

(b)when the student loan[^F122 or the postgraduate ^F115... degree loan^F122] has already been repaid in full,

the repayment will be considered to have been received by the Authority on 31 January next following the tax year in accordance with regulation 17(b) and the Authority must refund to HMRC for the borrower’s account any overpayment which results from the receipt.

(3) A refund under paragraph (2) will not carry interest and HMRC will be considered to have received the refund on the date on which the amount refunded was considered to have been received by the Authority in accordance with regulation 17.

(4)[^F123 Subject to [^F124 regulation 20A^F124,F123]] where the Authority has received a repayment by way of deduction from the borrower’s earnings for a tax year in accordance with Part 4 and those earnings do not exceed [^F125the repayment threshold^F125] , the Authority must refund the amount deducted if the borrower applies for a refund.

(5) Where the Authority has received a voluntary payment not required under these Regulations in relation to the student loan of a borrower who is an eligible teacher after the date on which the borrower has commenced eligible employment or 1 September 2002 whichever is the later, the Authority may refund to the borrower—

(a)who is a full-time eligible teacher, an amount equal to that payment, or

(b)who is a part-time eligible teacher, an amount equal to the part of that payment which is not required to pay the student loan in full not including the proportion of the loan for which the teacher is eligible for a reduction under the Teachers’ Regulations.

^F126(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F126(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F126(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F126(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F126(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F127Excess payments: more than one loan

20A.—(1) This regulation applies where—

(a)a borrower has—

(i)a postgraduate ^F128... degree loan and a post-2012 student loan;

(ii)a postgraduate ^F129... degree loan and a student loan which is [^F130 neither^F130] a post-2012 student loan [^F131 nor a Scottish student loan^F131] ; ^F132...

(iii)a post-2012 student loan and a student loan which is [^F133 neither^F133] a post-2012 student loan [^F134 nor a Scottish student loan^F134] ;

[^F135 (iv)a Scottish student loan and a student loan which is neither a post-2012 student loan nor a Scottish student loan;

(v)a Scottish student loan and a post-2012 student loan; or

(vi)a Scottish student loan and a postgraduate degree loan;^F135] and

(b)the Authority receives a repayment either directly from the borrower under regulation 15(1) or from HMRC under Part 3 or 4—

(i)which results in one of the loans being repaid in full; or

(ii)when one of the loans has already been repaid in full.

(2) Where the amount of the excess payment exceeds £10, the Authority must give notice to the borrower that—

(a)the Authority intends to treat the excess payment as a direct payment under regulation 15(1) for the second loan, unless the borrower notifies the Authority, within 60 days of the date of the Authority’s notice, that the excess payment should be refunded to the borrower; and

(b)interest will accrue on a refund from the date of receipt of the repayment until the earlier of—

(i)a period of 60 days after the Authority issues the notice; or

(ii)the date on which the Authority makes the refund to the borrower.

(3) The Authority must treat any excess payment as a direct payment to the Authority under regulation 15(1) for the second loan, unless the borrower gives notice to the Authority in accordance with paragraph (2)(a).

(4) Where the borrower gives notice to the Authority in accordance with paragraph (2)(a) that the excess payment should be refunded, the Authority must refund the excess payment and any accrued interest to the borrower.

(5) A refund under paragraph (4) carries interest calculated as if it were the principal of the fully repaid loan, outstanding from the date of receipt of the repayment to the earlier of—

(a)the end of a period of 60 days after the Authority issues a notice, or

(b)the date on which the Authority makes the refund to the borrower,

after which period no interest will accrue.

(6) In this regulation—

(i) “fully repaid loan” means a loan that has been repaid in full in the circumstances described in paragraph (1);

(ii) “second loan” means the loan that remains unpaid in those circumstances;

(iii) “excess payment” means the amount of the repayment described in paragraph (1)(b) which is not required to repay the fully repaid loan. ^F127]

[^F136Interest rate not to exceed prevailing market rate

20B.—(1) This regulation applies if the interest rate at which a post-2012 student loan or a postgraduate degree loan bears interest exceeds the prevailing market rate (if any).

(2) The Authority must substitute the prevailing market rate for the interest rate.

(3) In this regulation—

“ interest rate ” means the interest rate calculated in accordance with regulation 21A or 21B (as the case may be);

“ prevailing market rate ” means, for the period specified in the left-hand column of the table, the rate specified in the right-hand column of the table in relation to that period.

Interest rate on the loans_I23

21.[^F138—(A1) This regulation applies in relation to students loans which are not post-2012 student loans.^F138]

(1) Subject to paragraph (2), during any academic year, if the Authority determines that student loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F139rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order^F139] equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for the two Marches immediately before the commencement of the academic year.

(2) If the rate referred to in paragraph (1) exceeds the rate for the time being specified [^F140by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001^F140] student loans bear interest at the rate so specified.

(3) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(4) The index of prices to which the Authority is required by section 22(8) of the 1998 Act to have regard in prescribing the rate of interest which student loans bear is the retail prices all items index mentioned in paragraph (1).

(5) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate determined in accordance with paragraph (1) for any forthcoming academic year, subject to any variation required by virtue of paragraph (2) to be applied.

(6) If, for any academic year, the Authority determines not to charge interest on student loans, the Authority must publish notice of that fact in the same manner.

(7) If, for any academic year, the Authority publishes more than one rate of interest to apply to student loans, any subsequent rate so published will replace any previously published rate as the rate to apply from the date specified in the notice.

[^F141Interest rate on post-2012 student loans

21A.—(1) This regulation applies in relation to post-2012 student loans.

(2) Subject to paragraphs [^F142 (2A), (2B), (2C),^F142] [^F143 (2D), (2E), (2F),^F143] ^F144 ... (3), (4) and (5), during any academic year, if the Authority determines that post-2012 student loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F145 total charge for credit rules^F145] equal to—

(a)the standard interest rate plus 3%, until the earlier of the end of the tax year in which—

(i)the borrower completes the course;

(ii)the borrower leaves the course; or

(iii)the fourth anniversary of the course start date occurs, in the case of loans in relation to part-time courses;

(b)after the period in sub-paragraph (a) for a borrower to whom Part 3 or 4 applies—

(i)in a tax year in which the borrower’s interest income is the lower interest threshold or less, the standard interest rate;

(ii)in a tax year in which the borrower’s interest income is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate; or

(iii)in a tax year in which the borrower’s interest income is more than the higher interest threshold, the standard interest rate plus 3%;

(c)after the period in sub-paragraph (a) for a borrower to whom Part 5 applies, where the Authority has determined under regulation 75(1) that the borrower may repay a loan by income-related instalments and the Authority considers that the interest income the borrower is likely to receive in the next 12 month period is—

(i)the lower interest threshold or less, the standard interest rate;

(ii)more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii)more than the higher interest threshold, the standard interest rate plus 3%;

(d)after the period in sub-paragraph (a) for a borrower to whom Part 5 applies, in any period during which a borrower is required to pay to the Authority a fixed instalment in accordance with a notice served under regulation 73, the standard interest rate plus 3%[^F146 ;

(e)for any period where sub-paragraphs (a), (b), (c) and (d) do not apply to a borrower, the standard interest rate.^F146]

[^F147 (2ZA) The interest rate in relation to a student loan during the period described in regulation 16(3) is the standard rate of interest.^F147]

[^F148 (2A) Subject to paragraphs (2B) [^F149 and (2C)^F149] ^F150 ..., during any academic year or part of any academic year, where a borrower makes repayments in accordance with regulation 18 or repays all of the outstanding balance of the student loan under regulation 15(1), post-2012 student loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F145 total charge for credit rules^F145] equal to—

(a)for a borrower to whom Part 3 or 4 applies and also applied for the whole or part of the previous tax year —

(i)where the interest income the borrower received in the previous tax year is the lower interest threshold or less, the standard interest rate;

(ii)where the interest income the borrower received in the previous tax year is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii)where the interest income the borrower received in the previous tax year is more than the higher interest threshold, the standard interest rate plus 3%;

(b)for a borrower to whom Part 5 applies, where the Authority has determined under regulation 75(1) that the borrower may repay a loan by income-related instalments and the Authority considers that the interest income the borrower is likely to receive in the next 12 month period is—

(i)the lower interest threshold or less, the standard interest rate;

(ii)more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii)more than the higher interest threshold, the standard interest rate plus 3%;

(c)for a borrower to whom Part 5 applies, in any period during which a borrower is required to pay to the Authority a fixed instalment in accordance with a notice served under regulation 73, the standard interest rate plus 3%;

(d)where sub-paragraphs (a), (b) and (c) do not apply to a borrower, the standard interest rate.

(2B) The interest income applied in paragraph (2A) will be from the tax year in which—

(a)repayments are made under regulation 18 where—

(i)a borrower makes repayments under regulation 18 during a tax year;

(ii)the borrower requests, after the end of the tax year in sub-paragraph (i), that their interest rate is recalculated; and

(iii)the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year;

(b)a borrower repays all of the outstanding balance of the student loan under regulation 15(1) where—

(i)the borrower requests that their interest rate is recalculated after the end of the tax year; and

(ii)the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year.

(2C) Where a borrower repays all of the outstanding balance of the student loan under regulation 15(1) in the tax year specified by regulation 15(2), the post-2012 student loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F145 total charge for credit rules^F145] equal to the standard interest rate.^F148]

[^F151 (2D) Subject to paragraphs (2E) [^F152 and (2F)^F152] ^F153 ..., for a borrower to whom Part 4 applies and has applied for the whole or part of the previous tax year, where the borrower repays all of the outstanding balance of the post-2012 student loan by way of deductions from earnings under Part 4 during the tax year beginning on 6 April 2019, any subsequent tax year or any part of those tax years, that loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to—

(a)where the interest income the borrower received in the previous tax year is the lower interest threshold or less, the standard interest rate;

(b)where the interest income the borrower received in the previous tax year is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(c)where the interest income the borrower received in the previous tax year is more than the higher interest threshold, the standard interest rate plus 3%.

(2E) The interest income applied in paragraph (2D) will be from the tax year in which a borrower repays all of the outstanding balance of the post-2012 student loan by way of deductions from earnings under Part 4 where—

(a)the borrower requests that their interest rate is recalculated after the end of the tax year; and

(b)the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year.

(2F) Where, during the tax year beginning on 6 April 2019 or any subsequent tax year or any part of those tax years, a borrower repays all of the outstanding balance of the post-2012 student loan by way of deductions from earnings under Part 4 in the tax year specified by regulation 15(2), that loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to the standard interest rate.^F151]

^F154(2G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) During any academic year, which starts on or after 1 September 2012 but ends on or before 31 August 2015 and for the period from 1 September 2015 to 5 April 2016, if the Authority determines that post-2012 student loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F145 total charge for credit rules^F145] equal to—

(a)the standard interest rate plus 3%, until the end of the tax year in which the borrower—

(i)completes the course; or

(ii)leaves the course,

(b)after the period in sub-paragraph (a) the standard interest rate.

(4)[^F155 During^F155] ^F156 ... any academic year or part of any academic year beginning on or after 6 April 2016, where a borrower fails to comply with one or more of regulations 22, 23(4) and 72, post-2012 student loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with [^F145 total charge for credit rules^F145] equal to the standard interest rate plus 3% for the period from the date the borrower fails to comply with one or more of regulations 22, 23(4) and 72, until the borrower complies with those regulations.

^F157(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where a borrower changes their mode of study between full-time and part-time study the interest under paragraph (2)(a) is to be calculated as if the course is a—

(a)full-time course, where there is a change from a part-time course to a full-time course but before the requirement to repay under regulation 15(2A) applies;

(b)part-time course, where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph 15(2A) applies;

(c)part-time course, where there is a change from a full-time course to a part-time course.

(6) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(7) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate determined in accordance with paragraphs (2) and (4) or where relevant paragraph (3), for any forthcoming academic year or part of that year.

(8) If, for any academic year, the Authority publishes more than one rate of interest to apply to post-2012 student loans, any subsequent rate so published will replace any previously published rate as the rate to apply from the date specified in the notice published in accordance with paragraph (7).

^F158(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F159(8B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) The standard interest rate is the greater of—

(a)0%; or

(b)an amount equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for the two Marches immediately before the commencement of the academic year.

(10) The additional interest rate is a percentage equal to 3 x (I - L)/(H - L) where—

• I is the borrower’s interest income,

• L is the lower interest threshold,

• H is the higher interest threshold.

(11) The borrower’s interest income is—

(a)for a borrower to whom regulation 28 (but not regulation 42) applies, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a);

(b)for a borrower to whom regulation 42 (but not regulation 28) applies, earnings as defined in regulation 41;

(c)for a borrower where the Authority makes a determination that the borrower may repay a loan by income-related instalments under regulation 75, gross income as defined in regulation 71;

(d)for a borrower to whom both regulations 28 and 42 apply in the same tax year, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a).

[^F160 (11A) This regulation is subject to regulation 20B (interest rate not to exceed prevailing market rate).^F160]

[^F161 (12) For a borrower to whom Part 3 or 4 applies, the lower interest threshold is—

[^F162 (a)for the repayment threshold year ending on 5th April 2023, an amount of £27,295;^F162]

(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—

A is the lower interest threshold in the previous repayment threshold year, and

B is the relevant percentage difference in average earnings.

(12A) For a borrower to whom Part 5 applies, the lower interest threshold is—

(a)for the repayment threshold year ending on [^F163 5th April 2023^F163] , an amount to be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table—

(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—

A is the lower interest threshold in the previous repayment threshold year for the band now applicable to the borrower’s country of residence, and

B is the relevant percentage difference in average earnings.

(13) For a borrower to whom Part 3 or 4 applies, the higher interest threshold is—

[^F165 (a)for the repayment threshold year ending on 5th April 2023, an amount of £49,130;^F165]

(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—

A is the higher interest threshold in the previous repayment threshold year, and

B is the relevant percentage difference in average earnings.

(13A) For a borrower to whom Part 5 applies, the higher interest threshold is—

(a)for the repayment threshold year ending on [^F166 5th April 2023^F166] , an amount to be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table—

(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—

A is the higher interest threshold in the previous repayment threshold year for the band now applicable to the borrower’s country of residence, and

B is the relevant percentage difference in average earnings.^F161]

(14) In relation to [^F168 paragraphs (12A) and (13A)^F168] the following conditions apply—

(a)the price level index for the United Kingdom is 100;

(b)price level indices are to be calculated using the most recent provisional comparative price level indices measured in gross domestic product produced by the World Bank’s Development Indicators ;

[^F169 (c)the band applicable to a country is determined by reference to the price level indices calculated under sub-paragraph (b);^F169]

(d)[^F170 where a price level index cannot be calculated under sub-paragraph (b^F170] the Authority may determine that the applicable threshold for a borrower is to be that for a country other than the borrower’s present country of residence.

[^F171 (15) In this regulation, “ total charge for credit rules ” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order. ^F171,F141]]

[^F172Interest rate on postgraduate ^F173... degree loans

21B.—(1)[^F174 The^F174] ^F175 ... interest rate in relation to a postgraduate ^F176... degree loan is RPI plus 3%.

^F177(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F178 (2) Interest accrues as of the date that the first payment of the loan is paid out under –

(a)regulation 13 of the 2016 Master's Degree Regulations;

[^F179 (b)regulation 13 of the 2017 Master’s Degree Wales Regulations;^F179]

(c)regulation 13 of the 2018 Doctoral Degree Regulations [^F180 ; or^F180]

[^F181 (d)regulation 13 of the 2018 Doctoral Degree Wales Regulations^F181] .^F178]

(3) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(4) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate for the forthcoming academic year or part of that year.

[^F182 (4ZA) This regulation is subject to regulation 20B (interest rate not to exceed prevailing market rate).^F182]

^F183(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F184(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this regulation, “RPI” means the percentage increase between the retail prices all items index published by the National Office for Statistics for the two Marches immediately before the commencement of the academic year. ^F172]

Information requests_I24

22. If a borrower-

(a)changes home address; or

(b)changes name,

the borrower must inform, and provide particulars of the change to, the Authority within six weeks of the relevant change.

Information notices_I25

23. —(1) The Authority may serve a notice (“an Information Notice”) on a borrower[^F185 by post or by an electronic format ^F185] .

(2) An Information Notice under paragraph (1) may require the borrower to provide some or all of the following, together with documentary evidence in support where relevant -

(a)full name;

(b)^F186telephone number ...or email address [^F187or both^F187] ;

(c)National Insurance number or a valid reason for not having one;

(d)date of birth;

(e)a statement of whether the borrower is employed, self-employed or not employed;

(f)the following particulars of employment and income during the period specified in the notice-

(i)for each part of that period during which the borrower was employed, the dates on which the employment began and (unless continuing) ended, the name and address of the employer, employee number, and gross earnings;

(ii)for each part of that period during which the borrower was self-employed, the dates on which that self-employment began and (unless continuing) ended and the borrower’s gross earnings; and

(iii)the amount, source and date of receipt of any other income;

[^F188 (g)such other information about the borrower’s financial position as may be required to determine whether the borrower is in receipt of any income.^F188]

(3) An Information Notice under paragraph (1) must contain statements detailing the penalties for failure to comply with an Information Notice set out in regulations 24 and 27.

(4) Where the Authority serves an Information Notice on a borrower under paragraph (1), the borrower must comply with it within 28 days beginning with the day on which the Information Notice was served.

Penalties and Penalty Notices_I26

24.—(1) Where a borrower fails to comply with regulation 22, the Authority may require the borrower to pay a penalty of £50.

(2) Where a borrower fails to comply with regulation 23(4), the Authority may require the borrower to pay a penalty of £50.

(3) Where a borrower is liable to a penalty under paragraphs (1) or (2) and has not paid it by the time of the expiry of the time limit for payment, the Authority may require the borrower to pay one additional penalty of £100 in respect of that failure.

(4) Where a borrower was liable to a penalty under paragraphs (1) or (2) and has paid the penalty but not complied with the requirements of the relevant regulation within 28 days of the date of payment of the penalty, the Authority may require the borrower to pay one additional penalty of £100 in respect of that failure.

(5) The Authority must notify the borrower of a penalty imposed under paragraphs (1) to (4) by serving a notice (“a Penalty Notice”) on the borrower[^F189 by post or by an electronic format ^F189] containing the details of that and other possible penalties under regulations 24 and 27.

(6) A penalty imposed under paragraphs (1) to (4) is payable within 28 days beginning on the day on which the Penalty Notice was served, despite the provisions of regulation 15(3), (4), (5) or (6).

(7) The Authority may add any penalty imposed under this regulation to the borrower’s loan account and it will form part of the principal of the loan from the date on which it is added.

Costs and expenses_I27

25.—(1) Where the Authority incurs reasonable costs or expenses in taking steps to—

(a)serve an Information Notice on a borrower under regulation 23(1);

(b)obtain the information requested in an Information Notice served under regulation 23(1); or,

(c)serve a Penalty Notice on a borrower under regulation 24(5).

the Authority may require the reimbursement of those costs or expenses by the borrower.

(2) Where the Authority incurs such costs or expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Authority is entitled to recover such costs and expenses as are incurred on behalf of the loan purchaser.

(3) The Authority may add any costs or expenses incurred under this regulation to the borrower’s loan account and they will form part of the principal of the student loan[^F190 or the postgraduate ^F191... degree loan^F190] from the date on which they are added.

(4) In respect of any transferred loan, any sum added to the borrower’s loan account in accordance with paragraph (3) is owed to the loan purchaser.

Alteration of relevant time limits_I28

26. Where the Authority considers that, having regard to all the circumstances of a particular case, a time limit in regulation 22, 23(4), 24(4) or 24(6) should be relaxed, the Authority may specify another time limit.

Foreclosure_I29

27. Where a borrower fails to comply with an Information or Penalty Notice or both, the Authority may require the borrower to repay the student loan[^F192 or the postgraduate ^F193... degree loan^F192] in full immediately.

PART 3 Repayments by Assessment to Income Tax

Repayments of student loans [^F194and postgraduate ^F195... degree loans^F194] by persons required to submit a tax return_I30

28. Repayments by a borrower who in respect of any tax year is required to make and deliver to HMRC a return under section 8 of the 1970 Act must be made, accounted for and recovered in the same manner as income tax payable under the Taxes Acts (whether or not any loan of the borrower is a transferred loan); and in such cases the provisions of this Part (which with extensions and modifications include provisions of the Taxes Acts) will apply to and for the purposes of such repayments.

Time for and amount of repayments_I31

29.—(1) Every borrower who has received a notice from the Authority of a requirement to make repayments of a student loan[^F196 or a postgraduate ^F197... degree loan^F196] under regulation 15(3)(a) must make repayment in respect of any tax year—

(a)which is specified in a notice under regulation 15(3)(a) or which, subject to paragraph (2), is any subsequent year up to and including any year specified in a notice under regulation 15(3)(d); and

(b)for which the borrower has been required to make and deliver a return under section 8 of the 1970 Act.

(2) A borrower will not be required to make repayments in respect of any tax year specified in a notice under regulation 15(3)(c) or any subsequent year falling before a year specified in a subsequent notice under regulation 15(3)(a).

[^F198 (3) The repayment must be an amount equal to—

(a)in the case of a student loan, 9% of the borrower’s total income for that year,

(b)in the case of a postgraduate ^F197... degree loan, 6% of the borrower’s total income for that year,

calculated in accordance with paragraph (4).^F198]

[^F199 (3A) The repayment under paragraph (3) is additional to, and concurrent with, any repayment due by—

(a)the student loan borrower in respect of a postgraduate ^F197... degree loan; or

(b)the postgraduate ^F197... degree loan borrower in respect of a student loan.^F199]

(4) A borrower’s total income for the purposes of paragraph (3) will be calculated by identifying the borrower’s total income in accordance with step 1 of section 23 of the 2007 Act and from that total income:

(a)excluding the [^F200repayment threshold^F200] ;

(b)where a borrower is an eligible teacher in part-time eligible employment, excluding any amount of income from that employment in excess of [^F201the repayment threshold^F201] ;

(c)excluding unearned income unless the amount of such income for that year exceeds £2,000;

(d)excluding incapacity benefit payable under the Social Security Contributions and Benefits Act 1992(26);

(e)excluding amounts chargeable to tax under Chapters 5, 6, 7 or 10 of Part 3 of the 2003 Act (benefits in kind);

(f)excluding amounts of any reduction or repayment made under the Teachers’ Regulations;

(g)excluding Employment and Support Allowance paid under the Welfare Reform Act 2007(27);

[^F202 (h)deducting the amount of any loss in respect of which relief is given under any of the following—

(i)section 64 of the 2007 Act (trade loss relief against general income);

(ii)section 83 of the 2007 Act (carry-forward trade loss relief);

(iii)section 118 of the 2007 Act (carry-forward property loss relief);

(iv)section 120 of the 2007 Act (property loss relief against general income);

(v)section 128 of the 2007 Act (in respect of losses in an employment); and^F202]

(i)deducting the amount of any payment in respect of which relief is given under section 96 of the 2007 Act (relief for post-cessation expenditure);

(j)deducting any amounts in respect of which relief is given under Part 4 Chapter 4 of the Finance Act 2004 (pension schemes etc)(28) and that have not been included in the calculation of total income at step 1 of section 23 of the 2007 Act(29).

(5) For the purposes of this regulation, unearned income is income other than—

(a)income charged under the provisions of either the 2003 Act or Part 2 of the 2005 Act except jobseeker’s allowance to which Chapter 3 of Part 10 of the 2003 Act applies; and

(b)the profits of a UK furnished holiday lettings business within the meaning of section 127(2) of the 2007 Act.

(6) For the purposes of this regulation, “jobseeker’s allowance” means an allowance within the meaning of Part 1 of the Jobseekers Act 1995 ( 30 ).

[^F203 (7)[^F204 Subject to [^F205 paragraphs (8) [^F206 , (8B)^F206] and (9)^F205,F204]] [^F207 the repayment threshold in relation to a student loan is^F207] —

(a)for any repayment threshold year ending on or before 5 April 2012, an amount of £15,000;

(b)for any repayment threshold year ending after 6 April 2012 ^F208..., an amount equal to X + (X x Y%) and rounded up to the nearest £5 where—

• X is the repayment threshold for the previous repayment threshold year,

• Y is the percentage increase between the retail prices all items index published by the Office for National Statistics for the two Marches immediately before the commencement of the previous [^F209 repayment threshold year^F209] ; and

^F210(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .^F203]

[^F211 (8) The repayment threshold in relation to a post-2012 student loan is—

(a)[^F212 for the repayment threshold year ending on 5th April 2023, an amount of £27,295,^F212] and

(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—

A is the repayment threshold for the previous repayment threshold year, and

B is the relevant percentage difference in average earnings.

(8A) The repayment threshold in relation to a postgraduate ^F197... degree loan is an amount of £21,000.^F211]

[^F213 (8B) Subject to paragraph (9), the repayment threshold in relation to a Scottish student loan is that set out in regulation 2 (interpretation) of the Repayment of Student Loans (Scotland) Regulations 2000 as that regulation had effect on the day on which these Regulations come into force.^F213]

[^F214 (9) The repayment threshold is that set out in paragraph (7)(a) or (b) (as the case may be) where—

(a)a borrower has a post-2012 student loan and a student loan which is neither a post-2012 student loan nor a Scottish student loan;

(b)a borrower has—

(i)a student loan which is neither a post-2012 student loan nor a Scottish student loan; and

(ii)a Scottish student loan;

(c)a borrower has—

(i)a student loan which is neither a post-2012 student loan nor a Scottish student loan;

(ii)a post-2012 student loan; and

(iii)a Scottish student loan.

(10) The repayment threshold where a borrower has a post-2012 student loan and a Scottish student loan is that set out in paragraph (8B).^F214]

Personal return_I32

30. For the purposes of establishing the amount of the repayment which a borrower is required to make for a tax year under regulation 29, HMRC may require the borrower—

(a)to include such information as may reasonably be required, in a return required to be made and delivered under section 8 of the 1970 Act ; and

(b)to deliver with the return such accounts, statements and documents as may reasonably be required relating to information contained in the return as a result of paragraph (a).

Returns to include self-assessment_I33

31.—(1) Subject to paragraph (2), every return made and delivered by a borrower under section 8 of the 1970 Act must include a self-assessment, namely—

(a)an assessment of the amount of the repayment which, on the basis of the information contained in the return and taking into account any relief or allowance mentioned in regulation 29 the borrower is required to make for the tax year under regulation 29; and

(b)an assessment of the amount payable by the borrower by way of repayment, being the difference between the amount of the repayment which the borrower is assessed to make for the tax year under sub-paragraph (a) and the aggregate amount of any repayments deducted from earnings under Part 4 during that year.

(2) Section 9(2) to (3A) (self-assessment) and section 9A (power to enquire into returns) of the 1970 Act apply to a self-assessment under this regulation as they apply to a self-assessment under section 9(1) of that Act, and any references in the Taxes Acts to those sections is to be construed as a reference to them as extended by this regulation.

Records_I34

32. Section 12B of the 1970 Act (records to be kept for the purposes of returns) applies in the case of a borrower as if any reference to a return includes reference to a return including the information required by regulation 30(b).

Other returns and information_I35

33.[^F215—(1) Sections 20BA (orders for the delivery of documents) and 20BB (falsification etc of documents) of the 1970 Act, Schedule 23 to the Finance Act 2011 and Schedule 38 to the Finance Act 2012 apply for the purposes of establishing the amount of the repayment a borrower may be required to make under this Part as they apply for the purposes of establishing the amount in respect of which a person is chargeable to income tax.^F215]

(2) Schedule 36 to the Finance Act 2008(31) (information and inspection powers) applies in relation to checking a borrower’s compliance with this Part as it applies in relation to checking a person’s tax position (as defined in that Schedule) subject to the modifications in paragraph (3).

(3) The modifications are —

(a)any reference to any provision of the Taxes Acts is to be treated as a reference to this Part;

(b)any reference to prejudice to the assessment or collection of tax is to be treated as a reference to prejudice to the assessment or collection of student loan[^F216 or postgraduate ^F217... degree loan^F216] repayments;

(c)the reference to information relating to the conduct of a pending appeal relating to tax is to be treated as a reference to information relating to the conduct of a pending appeal relating to compliance with this Part; and

(d)in paragraph 21(6)—

(i)paragraphs (a) and (c) are omitted; and

(ii)in paragraph (b) the reference to relevant tax for the chargeable period is to be treated as a reference to the amount of the student loan[^F218 or postgraduate ^F219... degree loan^F218] repayment shown in the self-assessment under regulation 31.

Assessment, claims and appeals_I36

34.—(1) Subject to paragraph (2), Parts 4 (assessment and claims) and 5 (appeals and other proceedings) of the 1970 Act apply with any necessary modifications for the purposes of—

(a)assessing the amount of the repayment a borrower is required to make under this Part;

(b)claims or other matters concerning such assessment; and

(c)appeals against any such assessment,

as if any reference to an assessment or a self-assessment included a reference to an assessment or self-assessment for the purposes of this Part.

(2) HMRC may not determine the amount of a repayment which a borrower may be required to make under this Part under section 28C of the 1970 Act (determination of tax where no return delivered).

Payment_I37

35.—(1) Any repayment by a borrower under this Part must be paid as if the repayment were an amount of income tax payable by the borrower under section 59B of the 1970 Act (payment of income tax and capital gains tax) in accordance with the following paragraphs.

(2) In a case where the borrower—

(a)gave the notice required by section 7 of the 1970 Act within 6 months from the end of the tax year, but

(b)was not given notice under section 8 of the 1970 Act until after 31 October next following that year,

any repayment by a borrower must be made at the end of the period of three months beginning with the day on which the notice under section 8 of the 1970 Act was given.

(3) In any other case the repayment must be made on or before 31 January next following the tax year.

(4) Section 59B(4A), (5) or (6) of the 1970 Act applies where an enquiry, an amendment of a self-assessment or an assessment is made in respect of a repayment under this Part respectively, and any reference to tax payable in those subsections is to be treated as a reference to a repayment by a borrower.

(5) Sections 59B(5A), (7) and (8) of the 1970 Act do not apply for the purposes of this regulation.

[^F220Late payment penalties

36. Schedule 56 to the Finance Act 2009 (penalty for failure to make payments on time) applies to repayments which have become payable by a borrower under this Part as it applies to an amount of income tax which—

(a)is payable in relation to the tax year 2010-11 or any subsequent tax year, and

(b)falls within—

(i)item 1, 12, 18 or 19 of the Table in paragraph 1 of that Schedule, or

(ii)insofar as the tax falls within item 1 of that Table, item 17, 23 or 24 of that Table.^F220]

Collection and recovery_I38

37. Part 6 of the 1970 Act (collection and recovery) applies to repayments, interest and penalties which have become due and payable by a borrower under this Part as it applies to income tax and interest charged and penalties imposed under that Act.

Persons chargeable in a representative capacity_I39

[^F221 38. Sections 74 (personal representatives) and 75 (receivers appointed by a court) of the 1970 Act apply in the case of repayments due and payable by a borrower under this Part as they apply in the case of income tax chargeable to any person.^F221]

[^F222Interest

39.—(1) Subject to paragraph (2), any repayment due and payable under this Part carries interest at the rate applicable under section 103 of the Finance Act 2009 for the purposes of section 101 of the Finance Act 2009 from whichever of the following days is applicable—

(a)the last day of the period referred to in regulation 35(2); or

(b)the date mentioned in regulation 35(3),

until payment, whether or not the applicable day is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(2) In relation to any repayment amount due under this Part and outstanding immediately prior to 31 October 2011—

(a)section 178 of the Finance Act 1989 for the purposes of section 86 of the 1970 Act has effect up to and including 30 October 2011, and

(b)sections 101 and 103 of the Finance Act 2009 have effect on and after 31 October 2011.

(3) Sections 90 and 91 of the 1970 Act apply to interest under this regulation as they apply to interest on income tax.

(4) Subject to paragraph (5), a refund by HMRC to a borrower of an overpayment of amounts payable under this Part carries interest at the rate applicable under section 103 of the Finance Act 2009 from the date on which the overpayment arose to the date on which the order for the refund is issued.

(5) In relation to any refund by HMRC where the date of overpayment arose on or before 30 October 2011—

(a)section 178 of the Finance Act 1989 has effect for any period up to and including 30 October 2011; and

(b)sections 102 and 103 of the Finance Act 2009 has effect for any period on or after 31 October 2011.^F222]

Penalties_I40

40.[^F223—(1) Schedule 55 to the Finance Act 2009 (penalty for failure to make returns etc) applies—

(a)in relation to a return or other document which is required to be made or delivered to Her Majesty’s Revenue and Customs for the tax year 2010-11 or any subsequent tax year,

(b)which falls within item 1 of the Table in paragraph 1 of that Schedule, and

(c)which is required to include information under regulation 30,

as it applies to income tax on that same return.^F223]

[^F224 (2) The references to liability to tax in Schedule 55 to the Finance Act 2009 are construed as references to the aggregate of the amounts which, if a proper return had been delivered on the filing date, would have been payable—

(a)by the taxpayer under section 59B of that Act (payment of income tax and capital gains tax); and

(b)where the taxpayer is a borrower, by way of repayment under regulation 29.^F224]

(3) For tax years ending on or before 5 April 2008—

(a)section 95 of the 1970 Act (incorrect return or accounts for income tax or capital gains tax) applies in relation to anything done for the purposes of or in connection with the ascertainment of liability of a borrower to make a repayment under this Part as it applies for the purposes of or in connection with the ascertainment of liability to income tax, and for that purpose the difference referred to in section 95(2) is the difference between–

(i)the amount calculated under regulation 29(1); and

(ii)the amount which would have been the amount so calculated if the return, statement, declaration or accounts as made or submitted by the borrower had been correct;

(b)section 97 (incorrect returns or accounts; supplemental) of the 1970 Act applies in the case of returns, statements, declarations, accounts, information or documents for the purposes of repayments under this Part as it applies for the purposes of income tax.

(4) For tax years commencing on or after 6 April 2008, where the date on which the return is due to be filed is on or after 6 April 2009, Schedule 24 to the Finance Act 2007(32) (penalties for errors) applies—

(a)in relation to anything done for the purposes of or in connection with the ascertainment of liability of a borrower to make a repayment under this Part as it applies for the purposes of or in connection with the ascertainment of liability to income tax; and

(b)in the case of returns, statements, declarations, accounts, information or documents for the purposes of repayments under this Part as it applies for the purposes of income tax.

PART 4 Deduction of Repayments by Employers

Interpretation_I41

41. In this Part—

[^F225 “approved method” means—

“combined amount” means an amount which includes deductions of student loan[^F226 or postgraduate ^F227 ... degree loan ^F226] repayments under this Part and one or more of the following:

“the Contributions Regulations” means the Social Security (Contributions) Regulations 2001 ( 34 );

“deductions working sheet” means any form of record on or in which are to be kept matters required by the Contributions Regulations in connection with an employee’s earnings and deductions;

“earnings” means, subject to regulation 45 of these Regulations, such sums as–

“employee” means any person in receipt of earnings;

“employer” means any person paying earnings to an employee, and includes the Crown;

“Form P45” has the same meaning as in the PAYE Regulations;

“Form P46” has the same meaning as in the PAYE Regulations;

“income tax month” means the period beginning on the 6 ^th day of any calendar month and ending on the 5 ^th day of the following calendar month;

“income tax period” means income tax quarter where regulation 54(2) has effect, but otherwise means income tax month;

“income tax quarter” means the period beginning on 6 April and ending on 5 July, or beginning on 6 July and ending on 5 October, or beginning on 6 October and ending on 5 January, or beginning on 6 January and ending on 5 April;

[^F228 “non-Real Time Information employer” means an employer other than one within regulation 41A; ^F228]

“the PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003 ( 37 );

[^F228 “Real Time Information employer” has the meaning given in regulation 41A. ^F228]

[^F229Real Time Information employers

41A.—(1) The following are Real Time Information employers—

(a)an employer who has entered into an agreement with HMRC to comply with the provisions of these Regulations which are expressed as relating to Real Time Information employers;

(b)an employer within paragraph (2);

(c)^F230... and

(d)on and after 6th October 2013, all employers.

(2) An employer is within this paragraph if the employer is a Real Time Information employer for the purposes of paragraph 1(4) of Schedule 4 to the Contributions Regulations.^F229]

Repayment of student loans [^F231or postgraduate ^F232... degree loans^F231] by employees_I42

42. Subject to the provisions contained in this Part, repayments by a borrower who is an employee must be made, accounted for and recovered in the same manner as income tax deducted from the earnings of an office or employment by virtue of Regulations under section 684 of the 2003 Act (whether or not any loan of the borrower is a transferred loan).

[^F233Commencement of employment with a non-Real Time Information _I43

43.—(1) This regulation applies to a borrower who is an employee of—

(a)a non-Real Time Information employer; or

(b)a Real-Time Information employer to whom HMRC have given notice requiring the employer to send to HMRC Form P45 or Form P46 on the commencement of a new employee’s employment.

(2) Where at the commencement of employment a borrower is required to complete a Form P46, the borrower must declare any liability to repay any student loan [^F234 or postgraduate ^F235... degree loan^F234] in that Form P46 [^F236 and in particular on or after 6 April 2016 the borrower must declare whether or not any liability solely relates to a post-2012 student loan^F236] .^F233]

[^F237Commencement of employment with a Real Time Information employer

43A. An employee who commences employment with a Real Time Information employer must inform their employer whether the employee has any liability to repay any student loan [^F238 or any postgraduate ^F239... degree loan^F238] [^F240 and in particular on or after 6 April 2016 the borrower must inform their employer whether or not any liability solely relates to a post-2012 student loan^F240] .^F237]

Amount of repayments_I44

44.[^F241—(1) The repayment deducted must be—

(a)in relation to a student loan, 9%, and

(b)in relation to a postgraduate ^F242... degree loan, 6%,

of any earnings paid to, or provided to or for the benefit of, the borrower in respect of the employment, which exceed the threshold specified in paragraph (2).^F241]

(2) The threshold is—

(a)[^F243 the repayment threshold^F243][^F244 or default threshold^F244] , where the earnings period specified in respect of those earnings is a tax year; or

(b)in any other case, the amount which bears the same relation to [^F245the repayment threshold^F245][^F246 or default threshold^F246] as the number of days, weeks or months of the earnings period specified in respect of those earnings bears to the number of days, weeks or months in the tax year respectively.

[^F247 (2A) The repayment calculated under paragraph (1) is additional to, and concurrent with, any repayment due—

(a)by the student loan borrower in respect of a postgraduate ^F242... degree loan; or

(b)by the postgraduate ^F242... degree loan borrower in respect of a student loan.^F247]

(3) Where a repayment calculated under paragraph (1) includes pence as well as pounds the pence are to be ignored.

(4) Alternatively, the repayment calculated under paragraph (1) may be calculated in accordance with the appropriate table prepared by the Authority.

(5) Where a table would otherwise be appropriate, but the earnings period is a multiple of the period in the table, then the table may be applied by—

(a)dividing the actual earnings by such figure (X) as will give the earnings earned for the period shown in the table;

(b)taking the appropriate repayment specified in the table; and

(c)multiplying the table repayment sum by figure X,

to produce the appropriate payment sum for the actual earnings period.

[^F248 (6) The default threshold is applicable until a date specified by HMRC in a notice given under regulation 49(1) to the employer where a borrower has only liability to repay a post-2012 student loan and has—

(a)failed to declare whether or not liability solely relates to a post-2012 student loan under regulation 43(2); or

(b)failed to inform their employer whether or not liability solely relates to a post-2012 student loan under regulation 43A.

(7) The default threshold is the repayment threshold for a student loan which is [^F249 neither a post-2012 student loan nor a Scottish student loan^F249] as set out in regulation [^F250 29(7)(b)^F250] .^F248]

Calculation of earnings_I45

45.—(1) In calculating earnings for the purposes of these Regulations, earnings paid to or for the benefit of an employee are aggregated or not aggregated as they are for the purposes of the Contributions Regulations.

(2) HMRC may, where it is satisfied as to the existence of any practice in respect of the payment of earnings which causes the incidence of repayments to be avoided or reduced by means of the payment of earnings to or for the benefit of an employee by different persons in respect of different employments, give directions for securing that such repayments are made as if the practice were not followed.

(3) HMRC may, where it is satisfied as to the existence of any practice in respect of the payment of earnings which causes the incidence of repayments to be avoided or reduced by means of irregular or unequal payments, give directions for securing that such repayments are made as if that practice were not followed.

Earnings periods_I46

46.—(1) The amount of repayments, if any, which is deducted by the employer must, [^F251subject to paragraph (2)^F251] , be calculated by reference to the amount of earnings paid to, or provided to or for the benefit of, the borrower in respect of the employment, in the earnings period specified or determined in respect of those earnings for the purposes of the Contributions Regulations.

(2) Where earnings in respect of two or more employments—

(a)fall to be aggregated for the purposes of the Contributions Regulations; and

(b)the earnings periods in respect of those earnings are, by virtue of the Contributions Regulations, of different lengths,

the earnings period specified in respect of the aggregated earnings will be the shorter or shortest of those earnings periods.

Multiple employers_I47

47.—(1) Where —

(a)an employer has made an election under regulation 98(1) of the PAYE Regulations (Multiple PAYE schemes); and

(b)no improper purpose notice has been issued under regulation 99(1) of those Regulations (Multiple PAYE schemes: election made for improper purpose ineffective), or, if one has been issued, it has been withdrawn under regulation 99(5),

the employer is to be treated as having made an election for the purposes of those Regulations.

(2) Where earnings in respect of two or more employments fall to be aggregated under regulation 15(1)(a) of the Contributions Regulations, the amount to be deducted is apportioned between the employers in the same proportions as secondary Class 1 contributions are apportioned between them under that regulation.

Intermediate employers_I48

48.—(1) This regulation applies where a direction has been given by HMRC under section 691 of the 2003 Act (PAYE: mobile UK workforce) and for the purposes of this regulation—

(a) “the principal employer” means the person specified as the relevant person in the direction; and

(b) “the immediate employer” means the person specified as the contractor in that direction.

(2) Where an employee works for a person who is not an immediate employer of the employee, that person (“the principal employer”) is deemed to be the employer for the purposes of these Regulations and the immediate employer must provide the principal employer with such particulars of the employee’s earnings as may be necessary to enable the principal employer to comply with these Regulations.

(3) If the employee’s earnings are paid to the employee by the immediate employer then—

(a)the principal employer must notify the immediate employer of the amount of repayments which are to be deducted when the earnings are paid to the employee, and the immediate employer must deduct the amount notified accordingly; and

(b)the principal employer may make a corresponding deduction on making the payment to the immediate employer of the sum from which the earnings in question are to be paid.

Notice to employers_I49

49.—(1) Where HMRC has been given notice by the Authority under regulation 15(3)(b) that a borrower may be required to make repayments under this Part on and after a specified date, HMRC must give notice to any person who to its knowledge is an employer of the borrower requiring the employer to make deductions of repayments from earnings paid to the borrower in accordance with these Regulations.

(2) A notice under paragraph (1) must contain—

(a)the employee’s name;

(b)the employee’s National Insurance number; and

(c)the date on and after which the employer is required to make deductions.

(3) Where HMRC has been given notice by the Authority under regulation 15(3)(e) that it is no longer necessary for a borrower to make repayments after a particular date, HMRC must notify anyone who to its knowledge is an employer of that borrower requiring the employer not to make deductions from the borrower’s earnings on or after a particular date under this Part accordingly.

(4) A notice under paragraph (3) must contain—

(a)the employee’s name;

(b)the employee’s National Insurance number; and

(c)the date on and after which no deduction is required to be made.

(5) If HMRC is to give notices to an employer of two or more borrowers in accordance with paragraphs (1) or (3) or both, HMRC may give one notice in respect of all such borrowers containing, in respect of each of them, the particulars specified in paragraph (2) or (4) as the case requires.

Deductions of repayments_I50

50.—(1) Every employer who has received—

(a)a notice under regulation 49(1);

(b)^F252a Form P45 containing a statement under regulation 67 of these Regulations; ...

(c)a Form P46 stating that the employee has a student loan[^F253 or postgraduate ^F254... degree loan^F253] which requires repayment[^F255 ; or

(d)information under regulation 43A that the employee has any liability to repay any student loan [^F256 or postgraduate ^F254... degree loan^F256] ,^F255]

must, on making to that employee any payment of earnings on the first available pay date, which falls on or after the date referred to in paragraph (2) and at any time after that pay date, but before the date referred to in paragraph (3), deduct the appropriate repayment in accordance with these Regulations.

(2) The date is—

(a)where the employer has received notice from HMRC under regulation 49(1), the date specified in the notice as the date on and after which deductions must be made;

(b)^F257where the employer has received a Form P45, the date on which that Form is first received; ...

(c)where the employer has received a Form P46 stating that the employee has a student loan[^F258 or postgraduate ^F254... degree loan^F258] which requires repayment, the date on which that Form is first received [^F259; or

(d)where an employer has received information under regulation 43A that the employee has any liability to repay any student loan [^F260 or postgraduate ^F254... degree loan^F260] , the date on which that information is received.^F259]

(3) The date referred to in this paragraph is the date specified in the notice given by HMRC under regulation 49(3) as the date on and after which deductions must not be made; and the employer must not make deductions on or after the first available pay day on or after this date.

(4) Where two or more payments of earnings are to be aggregated for the purposes of calculating the amount of a repayment requiring deduction the employer may deduct that amount either wholly from one such payment or partly from one and partly from the other or any one or more of the others.

(5) Subject to paragraphs (6) and (7), if the employer does not deduct from any payment of earnings to an employee the full amount of a repayment which should have been deducted, the employer may deduct the remainder of the sum which should have been deducted from any subsequent payment or payments of earnings to that employee during the same tax year.

(6) An employer may not make a subsequent deduction in respect of any remainder not previously deducted after the date referred to in paragraph (3).

(7) The amount of any subsequent deduction referred to in paragraph (5) may be an amount in addition to but must not exceed the amount deductible from the payment under the other provisions of this Part.

(8) If the employer deducts any repayment from the earnings of an employee who is a borrower in accordance with these Regulations, the employer is not required to repay any amount to the employee only because that amount was not owed by the employee to the Authority or loan purchaser (as the case may be) as all or part of a student loan[^F261 or postgraduate ^F254... degree loan^F261] .

(9) Paragraph (1) does not apply to an employer of an eligible teacher in respect of eligible employment where the employer has received a written notice from the Authority to that effect.

Priority where other deductions required_I51

51.—(1) Where any employer is required to deduct repayments from a payment under regulation 50 but the aggregate of the deduction and any deductions on account of income tax and National Insurance contributions exceeds the amount of the payment, the employer must make the deductions on account of income tax and National Insurance first and the amount of the repayment which is to be deducted must be the remaining balance.

(2) Where an employer is required to deduct repayments from a payment under regulation 50 and is also required to comply with one or more of any of the types of notice or order in paragraph (3), paragraph (4) will apply.

(3) For the purposes of this paragraph, the notices and orders are—

(a) attachment of earnings orders made under the Attachment of Earnings Act 1971 (“the 1971 Act”)( 38 ), the Community Charge (Administration and Enforcement) Regulations 1989 ( 39 ) (“the Community Charge Regulations”), the Council Tax (Administration and Enforcement) Regulations 1992 ( 40 ) (“the Council Tax Regulations”), the Judgments Enforcement (Northern Ireland) Order 1981 ( 41 ), the Magistrates’ Courts Order 1981 ( 42 );

(b)deductions of earnings orders made under the Child Support (Collection and Enforcement) Regulations 1992(43); or

(c) income support deduction notices made under regulation 20 of the Social Security (Payments on Account, Overpayments and Recovery) Regulations 1988 ( 44 ) (“the Social Security Regulations”).

(4) An employer must deduct repayments as if they were amounts requiring deduction pursuant to an order under the 1971 Act which—

(a)was not made to secure the repayment of a judgement debt or payments under an administration order;

(b)was the most recent order under that Act not made for that purpose; and

(c)specifies a protected earnings rate equal to the protected earnings rate specified in the most recent attachment of earnings order, deduction of earnings order or income support deduction notice not made for that purpose which specifies such a rate, unless there is no such order or notice.

(5) Where in the circumstances described in paragraph (4) an employer is required to comply with an attachment of earnings order made under the Community Charge Regulations, the Council Tax Regulations or an income support deduction notice under regulation 20 of the Social Security Regulations before deducting a repayment under regulation 50, no repayment must be deducted by the employer.

(6) Where an employer is required to deduct repayments from a payment under regulation 50 and is also required to comply with one or more earnings arrestments, current maintenance arrestments or conjoined arrestment orders within the meaning of the Debtors (Scotland) Act 1987(45) (whether or not also required to comply with an attachment of earnings order, deduction of earnings order or income support deduction notice), no repayments under regulation 50 may be deducted.

(7) Where repayments to be deducted in accordance with paragraph (4) are reduced as a result of paragraph 4(c) and the total of the reduced payments includes pence as well as pounds the pence are to be ignored.

Deductions working sheet_I52

52.—(1) The employer must record on the deductions working sheet for an employee the amount of any deduction from any payment of earnings under these Regulations.

(2) Where two or more payments of earnings are to be aggregated for the purposes of calculating the amount of repayments requiring deduction, the employer must record a single amount, being the total of the amount requiring deduction in respect of the aggregated payments, rather than recording separate amounts in respect of each such payment.

Certificate of repayments_I53

53.—(1) Where the employer is required to give an employee a certificate in accordance with regulation 67 of the PAYE Regulations, or paragraph 9 of Schedule 4 to the Contributions Regulations (Form P60), the employer must record in the certificate the amount of repayments deducted by that employer in the tax year to which the certificate relates.

(2) Where the employer is not otherwise required to give an employee who is an employee on the last day of the tax year such a certificate but has deducted repayments in respect of a tax year the employer must give the employee a certificate showing the amount of repayments deducted for that tax year.

Payment of repayments deducted to HMRC_I54

^F26254.—(1) Subject to paragraphs (2) ... and (6) the employer must pay an amount equal to the smaller of the repayments—

(a)deducted by the employer under these Regulations during an income tax month[^F263 (and, where required, reported under regulation 59B or 59E)^F263] ; or

(b)which the employer was required to deduct under these Regulations during that income tax month,

to HMRC within 14 days of the end of that income tax month.

[^F264 (1A) The amount specified in paragraph (1) must be adjusted to take account of errors corrected under regulation 59F(5).^F264]

(2) Where, under paragraph 11 of Schedule 4 to the Contributions Regulations, the employer is required to pay National Insurance contributions due in respect of earnings paid in an income tax quarter within 14 days of its end, then subject to paragraphs (3) and (6), the employer must pay an amount equal to the smaller of the repayments—

(a)deducted by the employer under these Regulations during an income tax quarter, or

(b)which the employer is required to deduct during that quarter,

to HMRC within 14 days of the end of that income tax quarter.

^F265(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Subject to paragraph (5), if the employer has paid to HMRC on account of repayments under this regulation an amount which the employer was not liable to pay, the amounts which the employer is required subsequently to pay in respect of other payments of earnings made by the employer during the same tax year must be reduced by the amount overpaid.

(5) If the overpayment referred to in paragraph (4) corresponds to an over-deduction from the earnings of one or more employees, an employer may only act in accordance with paragraph (4) if and to the extent that the employer has reimbursed the employee or employees for that over-deduction.

(6) Where an employer makes a payment in accordance with paragraph (1) or (2) by an approved method of electronic communications, payment must be made within 17 days of the end of the relevant income tax period.

[^F266Payments to and recoveries from HMRC for each income tax period by Real Time Information employers: returns under regulation 59F(5)

54A.—(1) This regulation applies if, during any income tax period, a Real Time Information employer makes a return under regulation 59F(5) (returns under regulation 59B and 59E: amendments).

(2) The amount specified in regulation 54(1) for the final income tax period in the year covered by the return is to be adjusted to take account of the information in the return.

(3) If the value of the adjustment required by paragraph (2) is a negative amount, the employer may recover that amount—

(a)by setting it off against the amount the employer is liable to pay under regulation 54(1) for the income tax period in which the return is made; or

(b)from the Commissioners for Her Majesty’s Revenue and Customs.^F266]

Notice and certificate when repayments deducted not paid_I55

55.—(1) This regulation applies where, within 17 days of the end of any income tax period[^F267 a non-Real Time Information employer^F267] has paid no amount in respect of student loan[^F268 or postgraduate ^F269... degree loan^F268] repayments to HMRC under regulation 54 for that income tax period and HMRC is unaware of the amount, if any, which the employer is liable to pay.

(2) Where this regulation applies, HMRC may give notice to the employer requiring the employer to render a return within 14 days in such form as HMRC may prescribe showing the amount in respect of student loan[^F270 or postgraduate ^F269... degree loan^F270] repayments which the employer is liable to pay to HMRC under regulation 54 in respect of the relevant income tax period.

(3) Where a notice given by HMRC under paragraph (2) extends to two or more consecutive income tax periods, these Regulations have effect as if the consecutive income tax periods were one income tax period.

(4) HMRC may give notice under paragraph (2), even if an amount in respect of student loan[^F271 or postgraduate ^F269... degree loan^F271] repayments has been paid to HMRC by the employer under regulation 54 for an income tax period, if HMRC is not satisfied that the amount paid is the full amount which the employer is liable to pay to HMRC in respect of the income tax period in question.

(5) Upon receipt of a return made by the employer under paragraph (2) HMRC may prepare a certificate showing the amount in respect of student loan[^F272 or postgraduate ^F269... degree loan^F272] repayments which the employer is liable to pay to HMRC in respect of the income tax period in question.

(6) The production of the return made by the employer under paragraph (2) and of the certificate of HMRC under paragraph (5) is sufficient evidence that the amount shown in the certificate is the amount of student loan[^F273 or postgraduate ^F269... degree loan^F273] repayment which the employer is liable to pay to HMRC in respect of the income tax period in question.

(7) Any document purporting to be a certificate under paragraph (5) is deemed to be such a certificate until the contrary is proved.

Notice of specified amount and certificate when repayments not deducted_I56

56.—(1) This regulation applies where, after 17 days following the end of any income tax period, the employer has paid no amount in respect of student loan[^F274 or postgraduate ^F275... degree loan^F274] repayments to HMRC under regulation 54 for that income tax period and there is reason to believe that the employer is liable to pay such repayments.

(2) Where this regulation applies, HMRC upon consideration of the employer’s record of past payments, whether of student loan repayments[^F276 , postgraduate ^F275... degree loan repayments^F276] or of combined amounts, may to the best of its judgment specify the amount [^F277in respect of any such^F277] repayments or of a combined amount which it considers the employer is liable to pay, and serve notice on the employer of that amount.

[^F278 (2A) In arriving at the amount under paragraph (2), HMRC may also take into account any returns made by the employer under these Regulations in the income tax period in which the return is made or earlier income tax periods.^F278]

(3) Where the employer has paid no amount under regulation 54 for the relevant income tax periods, HMRC may give a notice under paragraph (2) which extends to two or more consecutive income tax periods and these Regulations have effect as if those income tax periods were the latest income tax period specified in the notice.

(4) HMRC may give a notice under paragraph (2) even if an amount in respect of student loan[^F279 or postgraduate ^F275... degree loan^F279] repayments has been paid to it by the employer under regulation 54 for any income tax period, if HMRC is not satisfied, having sought the employer’s explanation, that the amount paid is the full amount which the employer is liable to pay to it for that income tax period and this regulation will apply to the amount specified.

(5) If the employer claims during the period allowed in a notice given under paragraph (2) that the payment made in respect of the income tax period specified is, or includes, the full amount of student loan[^F280 or postgraduate ^F275... degree loan^F280] repayments which the employer is liable to pay to HMRC for that period, but does not satisfy HMRC of this, then—

(a)the employer may require HMRC to inspect the employer’s documents and records as if an officer of Revenue and Customs had called upon the employer to produce those documents and records in accordance with regulation 60; and

(b)regulation 60 applies to that inspection and the notice given by HMRC under paragraph (2) is to be disregarded.

(6) Subject to paragraph (7), if the specified amount, or any part of it, is unpaid on the expiration of the period of seven days allowed in the notice, the amount unpaid—

(a)is deemed to be an amount in respect of student loan repayments[^F281 or postgraduate ^F275... degree loan repayments^F281] or to include an amount in respect of [^F282any such repayment^F282] which the employer was liable to pay for that income tax period in accordance with regulation 54, and

(b)may be certified by HMRC.

(7) Paragraph (6) does not apply if during the period allowed in the notice—

(a)the full amount which the employer is liable to pay to HMRC for that income tax period is paid, or

(b)the employer satisfies HMRC that no amount, or no further amount, is due for that income tax period.

(8) The production of a certificate under paragraph (6) is sufficient evidence that the employer is liable to pay the amount shown in the certificate to HMRC.

(9) Any document purporting to be a certificate under paragraph (6) is deemed to be such a certificate until the contrary is proved.

(10) Despite any other provision of this regulation, if an employer pays any amount certified by HMRC under this regulation and that amount exceeds the amount which the employer would have been liable to pay in respect of that income tax period apart from this regulation, the employer is entitled to set off such excess payment against any amount which the employer is liable to pay to HMRC under regulation 54 for any subsequent income tax period.

(11) If the employer renders the return required by regulation 59 after the end of the tax year and pays the total net amount in respect of student loan repayments[^F283 or postgraduate ^F275... degree loan repayments^F283] which the employer is liable to pay, any excess amount paid and not otherwise recovered by set-off in accordance with this regulation is to be repaid.

Recovery of payments deducted through the income tax system_I57

57.—(1) The provisions of the Taxes Acts and of any Regulations under section 684 of the 2003 Act relating to the recovery of tax apply to the recovery of any amount which the employer is liable to pay to HMRC under regulation 54, 55, 56, 59 or 60 as if that amount had been tax charged by way of an assessment on the employer as employment income under the 2003 Act.

(2) Without prejudice to paragraph (1), regulation 84 of the PAYE Regulations applies to the amount shown in a certificate under regulation 55(5), 56(6), 59(4), or 60(4), with the modification that summary proceedings for the recovery of the amount in respect of student loan repayments[^F284 , postgraduate ^F285... degree loan repayments^F284] or a combined amount, or such part of it as remains unpaid, together with any interest payable on such amount, may be brought at any time before the expiry of 12 months after the date of the certificate.

(3) In the application of any provisions referred to in paragraph (1) to any proceedings under this regulation which limit the amount which is recoverable in those proceedings, any other element of a combined amount which may by virtue of paragraphs (4) to (6) be included as part of the cause of action or matter of complaint in those proceedings is to be disregarded.

(4) Proceedings may be brought for the recovery of–

(a)the total amount which the employer is liable to pay to HMRC under regulation 54, or

(b)the total amount which the employer is liable to pay HMRC as a combined amount including any amount under regulation 54, without specifying the respective amounts of any component of a combined amount or distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question.

(5) For the purposes of-

(a)proceedings under section 66 or 67 of the 1970 Act (including proceedings under either section as applied by the provisions of this regulation), and

(b)summary proceedings (including, in Scotland, proceedings in the sheriff court), the total amount specified in paragraph (4) will, subject to the provisions of paragraphs (3) and (6), be one cause of action or one matter of complaint.

(6) Nothing in paragraphs (4) or (5) prevents the bringing of separate proceedings for the recovery of each of the several amounts referred to in paragraph (4) which the employer is liable to pay to HMRC for any income tax period in respect of each of the employer’s employees.

Interest on unpaid repayments_I58

58.[^F286—(1) Subject to paragraphs (1A) and (2), where an employer has not on or before the 14th day after the end of an income tax period, beginning on or after 6 April 2014, paid an amount which the employer is liable to pay to HMRC under regulation 54 for that period, that amount will carry interest at the rate applicable under section 103 of the Finance Act 2009 for the purposes of section 101 of the Finance Act 2009 from that date until payment.

(1A) Subject to paragraph (2), any amount which an employer is liable to pay to HMRC under regulation 54 and which is outstanding immediately prior to 6 April 2014 will carry interest from the 14th day after the end of the tax year in which it should have been paid to the date of payment at the rate applicable under—

(a)section 178 of the Finance Act 1989 for the purposes of section 86 of the 1970 Act in respect of the period up to and including 5 April 2014; and

(b)sections 101 and 103 of the Finance Act 2009 in respect of the period from 6 April 2014.^F286]

(2) Where payment is made by an approved method of electronic communications, the interest payable under paragraph (1) must be calculated as if the date in paragraph (1) was the 17^th day after the end of the tax [^F287period^F287] .

(3) Interest payable under this regulation is recoverable as if it were an amount which the employer was liable to pay under regulation 54.

(4) An amount to which paragraph (1) applies carries interest from the day mentioned in that paragraph even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(5) A certificate of HMRC that to the best of its knowledge and belief, any amount of interest payable under this regulation has not been paid to it by the employer, is sufficient evidence that the amount of interest shown on the certificate is unpaid and is due to the Crown.

(6) Any document purporting to be a certificate under paragraph (5) is deemed to be such a certificate until the contrary is proved.

(7) HMRC may prepare a certificate certifying the total amount of interest payable in respect of the whole of a combined amount without specifying to what component of the combined amount the interest relates and paragraphs (5) and (6) will apply to that certificate.

(8) Where an employer has paid interest on an amount under this regulation and it is found not to have been due to be paid, although the amount in respect of which it was paid was due to be paid, that interest must be repaid to the employer.

Returns by employers_I59

59.[^F288—(A1) This regulation applies to—

(a)a non-Real Time Information employer;

(b)a Real Time Information employer in relation to tax years in which the employer was, for the whole of the tax year, a non-Real Time Information employer; and

(c)a Real Time Information employer to whom HMRC has given a notice requiring a return under this regulation in respect of a tax year.^F288]

(1) Not later than 44 days after the end of the tax year the employer must deliver to HMRC in such form as HMRC may approve or prescribe, a return showing in respect of each employee, in respect of whom the employer was required at any time during the tax year to prepare or maintain a deductions working sheet in accordance with regulation 52—

(a)such particulars as HMRC may require for the identification of the employee;

(b)the tax year to which the return relates; and

(c)the total amount of repayments deducted for the tax year from the earnings paid to the employee.

(2) The return required by paragraph (1) must include—

(a)a statement and declaration in the form approved or prescribed by HMRC containing a list of all deductions working sheets on which the employer was obliged to keep records in accordance with these Regulations in respect of the tax year; and

(b)a certificate showing the total amount of repayments deducted for the tax year in respect of each employee.

(3) Where the employer is a body corporate, the declaration and the certificate referred to in paragraph (2) must be signed by the secretary or a director of that body corporate.

(4) If within 17 days of the end of any tax year an employer has failed to pay to HMRC the total amount of repayments which the employer is liable to pay under regulation 54, HMRC may prepare a certificate showing the amount of repayments remaining unpaid for the tax year in question.

(5) Where an employer fails to make a return in accordance with paragraph (1), the employer is liable—

(a)to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed, and

(b)if the failure continues beyond 12 months, without prejudice to any penalty under sub- paragraph (a), to a penalty not exceeding so much of the amount payable by the employer in accordance with the Regulations for the tax year to which the return relates as remained unpaid at the end of the 22 April after the end of that tax year.

(6) For the purposes of paragraph (5), the relevant monthly amount in the case of a failure to make a return is—

(a)£100, where the number of persons in respect of whom particulars should be included in the return is fifty or less;

(b)£100 for each fifty such persons, where that number is greater than fifty; and

(c)an additional £100 where the number of persons referred to in sub-paragraph (b) is not a multiple of fifty.

(7) Where a return under this regulation must be made—

(a)at the same time as–

(i)any specified return which must be made in accordance with Regulations made by HMRC under section 684 of the 2003 Act or section 566(1) of the 1988 Act (sub-contractors) to which section 98A of the 1970 Act (penalties) applies; or

(ii)any specified return which must be made in accordance with Regulations made by HMRC under paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 in respect of which section 98A of the 1970 Act has been applied by such Regulations; or

(b)if the circumstances are such that a return mentioned in paragraph (a) does not fall to be made, at a time defined by reference to the time for making that return, had it fallen to be made,

and a person has been required to pay a penalty under section 98A(2)(a) of the 1970 Act in respect of the tax return or the National Insurance contributions return or both, that person must not also be required to pay a penalty in respect of any failure to submit the return under this regulation.

(8) For tax years—

(a)ending on or before 5 April 2009, where an employer fraudulently or negligently makes an incorrect return under paragraph (1), the employer will be liable to a penalty not exceeding £3000 for each employee in respect of whom incorrect particulars are included in the return;

(b)commencing on or after 6 April 2009, where the date on which the return is due to be filed is on or after 6 April 2010, where an employer carelessly or deliberately makes an incorrect return under paragraph (1) penalties as set out in Schedule 24 to the Finance Act 2007 (penalties for errors) will apply as they apply in connection with PAYE.

(9) A certificate under paragraph (4) that the net amount in respect of student loan[^F289 or postgraduate ^F290... degree loan^F289] repayments remaining unpaid for that year has not been paid to it by the employer is sufficient evidence that the sum shown on the certificate is unpaid and is due to the Crown.

(10) Any document purporting to be a certificate under paragraph (4) is deemed to be such a certificate until the contrary is proved.

[^F291Application of regulations 59B to 59F

59A. Regulations 59B to 59F apply only to Real Time Information employers.^F291]

[^F291Real time returns of information about payments of earnings

59B.—(1) On or before making a payment of earnings to an employee, an employer must deliver to HMRC the information specified in Schedule 2 (real time returns) in accordance with this regulation [^F292 but this is subject to paragraph (1A)^F292] .

[^F293 (1A) But a Real Time Information employer—

(a)which for the tax year 2014-15 meets Conditions A and B, or

(b)which for the tax year 2015-16 meets Conditions A and C,

may instead for that tax year deliver to HMRC the information specified in Schedule 2 in respect of all relevant payments made to an employee in a tax month on or before making the last relevant payment in that month.

(1B) Condition A is that at 5 April 2014 the employer is one to whom HMRC has issued an employer’s PAYE reference.

(1C) Condition B is that at 6 April 2014 that Real Time Information employer employs no more than 9 employees.

(1D) Condition C is that at 6 April 2015 that Real Time Information employer employs no more than 9 employees.

(1E) In this regulation “employer’s PAYE reference” means the combination of letters, numbers or both used by HMRC to identify an employer for the purposes of the PAYE Regulations and the number which identifies the employer’s HMRC office. ^F293]

(2) The information must be included in a return.

(3) Subject to paragraph (4), if payments of earnings are made to more than one employee at the same time, the return under paragraph (2) must include information required by Schedule 2 in respect of each employee to whom a payment of earnings is made at that time.

(4) If payments of earnings are made to more than one employee at the same time but the employer operates more than one payroll, the employer must make a return in respect of each payroll.

(5) The return is to be made using an approved method of electronic communications.

^F294(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F294(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .^F291]

[^F295Employees paid in specified circumstances

59BA.—(1) This regulation applies if an employer makes a payment to an employee and all of the circumstances in paragraph (2) apply.

(2) The circumstances are that—

(a)the payment includes an amount which is a relevant payment for work undertaken by the employee on—

(i)the day the payment is made, or

(ii)provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,

(b)in respect of the work mentioned in sub-paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and

(c)it is not reasonably practicable for the employer to deliver the information required by regulation 59B(1) on making the payment.

(3) The employer need not deliver the information required by regulation 59B(1) on or before making the payment.

(4) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

(5) Where this regulation applies, the information required under regulation 59B(1) in respect of the relevant payment may be included in a return with the information for any other relevant payment.^F295]

[^F295Benefits and expenses – returns under regulations 85 to 87 of the PAYE Regulations

59BB.—(1) This paragraph applies if an employer makes a payment of general earnings to an employee which, for the purposes of tax falls to be included in a return under—

(a)regulations 85 and 86 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must be provided for each employee), or

(b)regulations 85 and 87 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must also be provided for benefits code employees) or would do if the employee’s employment was subject to the benefits code for the purposes of regulation 85 of the PAYE Regulations.

(2) If the employer is unable to comply with the requirement in regulation 59B(1) to deliver the information required by that regulation on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than 14 days after the end of the income tax month the payment is made in.^F295]

[^F291Modification of the requirements of regulation 59B: notional payments

59C.—(1) This regulation applies if an employer makes a payment of earnings to an employee which, for the purposes of tax, is a notional payment within the meaning given by section 710(2) of the 2003 Act.

(2) If the employer is unable to comply with the requirement in regulation 59B(1) to deliver the information required by that regulation on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than—

(a)the time at which the employer delivers the information required by regulation 67B of the PAYE Regulations in respect of the payment;

(b)the time at which the employer makes a deduction from earnings in respect of the payment in accordance with regulation 50 (deductions of repayments); or

(c)14 days after the end of the income tax month the payment is made in,

whichever is earliest.^F291]

[^F291Relationship between regulation 59B and aggregation of earnings

59D.—(1) Where an employee’s earnings are aggregated, the employer or, as the case may be, employers must make such arrangements as are necessary to ensure that the information specified in paragraph (2) in respect of all the aggregated earnings is provided in the information given under regulation 59B relating to one of the employee’s employments only.

(2) The information specified in this paragraph is the information specified in paragraph 3 of Schedule 2 (real time returns).^F291]

[^F291Exceptions to regulation 59B

59E.—(1) This regulation applies to an employer who is—

(a)an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;

(b)a partnership, if all partners fall within sub-paragraph (a);

(c)a company, if all directors and the company secretary fall within sub-paragraph (a); ^F296...

(d)a care and support employer [^F297 , or

(e)an employer to whom a direction has been given under regulation 67D (11) of the PAYE Regulations^F297] [^F298 ,

but this is subject to paragraph (2B)^F298] .

(2) An employer to whom this regulation applies may proceed in accordance with this regulation instead of regulation 59B.

[^F299 (2A) Before 6 April 2014, a Real Time Information employer to whom this regulation applies may proceed as if the employer were a non-Real Time Information employer and the provisions of these Regulations apply accordingly to such employer.^F299]

[^F300 (2B) This regulation does not apply if a Real Time Information employer within paragraph (1) makes a return using an approved method of electronic communications.^F300]

(3)[^F301 On and after 6 April 2014, the^F301] employer must deliver to HMRC the information specified in Schedule 2 in respect of each employee to whom payments of earnings are made in an income tax [^F302 quarter^F302] .

(4) The information must be included in a return.

(5) The return required under paragraph (4) must be delivered within 14 days after the end of the income tax [^F303 quarter^F303] the return relates to.

(6) If payments of earnings have been made to more than one employee in the income tax [^F304 quarter^F304] , the return under paragraph (4) must include the information required by Schedule 2 in respect of each employee to whom the payment of earnings has been made.

^F305(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F305(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

(10) In paragraph (1)(d), “a care and support employer” means an individual (“A”) who employs a person to provide domestic or personal services at or from A’s home where—

(a)the services are provided to A or a member of the A’s family;

(b)the recipient of the services has a physical or mental disability, or is elderly or infirm; and

(c)it is A who delivers the return (and not some other person on A’s behalf).^F291]

[^F291Returns under regulations 59B and 59E: amendments

59F.—(1) This regulation applies where [^F306 there is an inaccuracy in a return, whether careless or deliberate,^F306] made under regulation 59B (real time returns of information about payments of earnings) or [^F307 59E^F307] (exceptions to regulation 59B) and paragraph (2) or (3) applies.

(2) This paragraph applies where the [^F308 inaccuracy^F308] relates to the information given in the return in respect of an employee under paragraph 3 of Schedule 2 (real time returns).

(3) This paragraph applies where the [^F309 inaccuracy^F309] was the omission of details of a payment of earnings to an employee.

[^F310 (4) When the employer becomes aware of an inaccuracy in a return submitted under regulation 59B or 59E, the employer must provide the correct information in the next return for the tax year in question.^F310]

(5) But if the information has not been corrected before 20th April following the end of the tax year in question, the employer must make a return under this paragraph.

(6) A return under paragraph (5)—

(a)must include the following—

(i)the information specified in paragraph 1 of Schedule 2 (real time returns);

^F311(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)the value of the adjustment to the information given under paragraph 3 of Schedule 2 in the final return under regulation 59B or 59E containing information in respect of the employee in the tax year in question; and

(iv)if paragraph (7) applies, the information specified in paragraph 5 of Schedule 2;

(b)must be made as soon as reasonably practicable after the [^F312 employer becomes aware of the inaccuracy^F312] ; and

(c)must be made by an [^F313 approved^F313] method of electronic communications.

(7) This paragraph applies if—

(a)the [^F314 inaccuracy^F314] is within paragraph (3);

(b)the payment of earnings was the first payment of earnings to the employee in the employment; and

(c)the information specified in paragraph 5 of Schedule 2 has not otherwise been provided.

(8) In the application of paragraphs (5) and (6) to cases within paragraph (3), if no information was given in any returns under regulation 59B or 59E in respect of the employee in the tax year, the value of the adjustments required must be calculated as if there was a final return containing information for the employee in the year and the figure requiring adjustment was zero.

(9) Paragraph (6)(c) does not apply if the employer is one to whom regulation 59E applies but in those circumstances the return must be in such form as HMRC may approve or prescribe.^F291]

[^F315Failure to make a return under regulation 59B or 59E

59G.—(1) This regulation applies where an employer does not make a return as required by regulation 59B (Real time returns of information about payments of earnings) or 59E (Exceptions to regulation 59B).

(2) The employer must provide the information in the next return made under regulation 59B or 59E for the tax year in question.

(3) If the information has not been provided before 20 April following the end of the tax year in question, the employer must make a return under this paragraph before 20 May following the tax year in question.

(4) A return under paragraph (3)—

(a)must include the information specified in Schedule 2;

(b)must be made as soon as reasonably practicable after discovery of the failure to make the return, and

(c)must be made by an approved method of electronic communications.

(5) Section 98A of the 1970 Act (special penalties in case of certain returns) applies to returns under paragraph (3) [^F316 but this paragraph does not apply to a return for the tax year 2014-15 or subsequent tax years^F316] .^F315]

Inspection of employers’ records_I60

60.—(1) For the purposes of carrying out inspections of an employer’s records in relation to checking their compliance with this Part, Schedule 36 to the Finance Act 2008(46) (information and inspection powers) applies as it applies in relation to checking a person’s tax position (as defined in that Schedule) subject to the modifications in paragraph (2).

(2) The modifications are —

(a)any reference to any provision of the Taxes Acts is to be treated as a reference to this Part;

(b)the reference to information relating to the conduct of a pending appeal relating to tax is to be treated as a reference to information relating to the conduct of a pending appeal relating to compliance with this Part;

(c)paragraph 21 is omitted; and

(d) any reference to “statutory records” includes all documents and records relating to the repayments requiring deduction under this Part including any notice received under regulation 50(9).

(3) Statutory records (as defined in Schedule 36) must be retained by the employer for not less than 3 years after the end of the tax year to which they relate.

(4) HMRC may, in relation to each inspection, prepare a certificate showing—

(a)the amount in respect of student loan[^F317 or postgraduate ^F318... degree loan^F317] repayments which it appears from the documents and records produced that the employer is liable to pay HMRC for the years or income tax periods covered by the inspection; and

(b)^F319any amount in respect of such ... repayments which has not been paid to HMRC.

(5) A certificate under paragraph (4) is sufficient evidence that the employer is liable to pay the amount shown in the certificate pursuant to paragraph (4)(b) to HMRC in respect of the years or income tax periods shown in the certificate.

(6) Any document purporting to be a certificate under paragraph (4) is deemed to be such a certificate until the contrary is proved.

Powers to obtain information_I61

61.—(1) For the purposes of obtaining information in relation to checking an employer’s compliance with this Part, Schedule 36 to the Finance Act 2008 (information and inspection powers) applies as it applies in relation to checking a person’s tax position (as defined in that Schedule) subject to the modifications in paragraph (2).

(2) The modifications are —

(a)any reference to any provision of the Taxes Acts is to be treated as a reference to this Part;

(b)any reference to prejudice to the assessment or collection of tax is to be treated as a reference to prejudice to the assessment or collection of student loan[^F320 or postgraduate ^F321... degree loan^F320] repayments;

(c)the reference to information relating to the conduct of a pending appeal relating to tax is to be treated as a reference to information relating to the conduct of a pending appeal relating to compliance with this Part;

(d)paragraphs 21, 35(4)(b), 36 and 37(2) are omitted; and

(e) a reference to “statutory records” includes all documents and records relating to the repayments requiring deduction under this Part including any notice received under regulation 50(9).

Formal determination of repayments payable by employer_I62

62.—(1) This regulation applies where it appears to HMRC that there may be repayments payable by an employer under regulation 54 which—

(a)have not been paid to HMRC, and

(b)have not been certified by HMRC under regulation 59.

(2) Where this regulation applies, HMRC may determine the amount of those repayments to the best of its judgement and must serve notice of the determination on the employer.

(3) A determination under this regulation may—

(a)cover the repayments payable by the employer under regulation 54 for any one or more tax periods in a tax year, and

(b)extend to the whole of the repayments or such part of them as is payable in respect of a class or classes of employees specified in the notice of determination (without naming the individual employees) or of one or more specified, named employees.

(4) The provisions of Parts 4 (Assessment and Claims), 5 (Appeals and Other proceedings) [^F322, 5A (Payment of Tax)^F322] and 6 (Collection and Recovery) of the 1970 Act apply to a determination under this regulation, with any necessary modification—

(a)as if the determination were an assessment for the purposes of that Act; and

(b)as if the amount of repayments determined was income tax charged on the employer.

Interest on unpaid repayments which have been formally determined_I63

63.[^F323—(1) Subject to paragraph (1A), where—

(a)an employer has not paid an amount of repayments to HMRC under regulation 54;

(b)HMRC makes a determination of the amount of such repayments under regulation 62; and

(c)repayments are payable pursuant to that determination,

those repayments will carry interest at the applicable rate under section 103 of the Finance Act 2009 for the purposes of section 101 of the Finance Act 2009 from the 14th day after the end of the income tax period in which they are payable, beginning on or after 6 April 2014, until payment.

(1A) Any repayments under paragraph (1) that are outstanding immediately prior to 6 April 2014 will carry interest from the 14th day after the end of the tax year in which it should have been paid to the date of payment at the applicable rate under—

(a)section 178 of the Finance Act 1989 for the purposes of section 86 of the 1970 Act in respect of the period up to and including 5 April 2014; and

(b)sections 101 and 103 of the Finance Act 2009 in respect of the period from 6 April 2014.^F323]

(2) Interest payable under this regulation is recoverable as if it were an amount which the employer is liable to pay under regulation 54.

Death of employer_I64