Explanatory note

These Regulations amend the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470) (“the Principal Regulations”). The Principal Regulations govern the repayment of income-contingent student loans paid to students under section 22 of the Teaching and Higher Education Act 1998.

Regulations 3, 5, 6 and 10 introduce a time limited mechanism to vary the £15,000 repayment threshold in the Principal Regulations to maintain its value. Regulation 11 introduces a similar mechanism to vary the Applicable Threshold amounts in the Principal Regulations, which apply to overseas borrowers, to maintain their value

Regulation 4 removes a typographical error in the Principal Regulations.

Regulations 7, 9 and 12 substitute new penalties, for failure to make payment of tax on time and failure to file returns on time, for those in the Principal Regulations.

Regulation 8 subsitutes new harmonised interest provisions for repayments and and refunds of overpayments payable under Part 3 of the Principal Regulations

A full impact assessment covering the introduction of the penalty regime entitled “working towards a harmonised regime and meeting the obligations to file returns and pay tax on time” was published on 14 April 2009 and is available at http://www.hmrc.gov.uk/better-regulation/ia.htm. The Explanatory Memorandum is published alongside the instrument on www.legislation.gov.uk.