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Regulation 44 Amount of repaymentsI1

United Kingdom

F1(1)

The repayment deducted must be—

(a)

in relation to a F2plan 1, 2, 4, or 5 loan, 9%, and

(b)

in relation to a F3plan 3 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).

(2)

The threshold is—

(a)

F4the repayment threshold F5or default threshold, 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 F6the repayment threshold F7or default threshold 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.

F8(2A)

The repayment calculated under paragraph F9(1)(b) is additional to, and concurrent with, any repayment F10under paragraph (1)(a).

(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.

F11(6)

The default threshold applies—

(a)

if, in relation to a plan 1, 2, 4 or 5 loan, the borrower fails to comply with regulation 43 (which relates to repayments liability), and

(b)

until the date specified by HMRC in a notice given to the borrower’s employer under regulation 49(1).

F12(7)

The default threshold is whichever repayment threshold for a plan 1, 2, 4 or 5 loan is the lowest repayment threshold.

Annotations

Textual amendments

F1

Reg. 44(1) substituted (5.9.2017) by The Repayment of Student Loans and Postgraduate Master’s Degree Loans (Amendment) Regulations 2017 (S.I. 2017/831), regs. 1(1), 26(2)

F2

Words in reg. 44(1)(a) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(1)(a)

F3

Words in reg. 44(1)(b) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(1)(b)

F4

Words in reg. 44(2)(a) substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(1), 10(a)

F5

Words in reg. 44(2)(a) inserted (6.4.2013) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2013 (S.I. 2013/607), regs. 1(1), 13(a)

F6

Words in reg. 44(2)(b) substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(1), 10(b)

F7

Words in reg. 44(2)(b) inserted (6.4.2013) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2013 (S.I. 2013/607), regs. 1(1), 13(b)

F8

Reg. 44(2A) inserted (5.9.2017) by The Repayment of Student Loans and Postgraduate Master’s Degree Loans (Amendment) Regulations 2017 (S.I. 2017/831), regs. 1(1), 26(3)

F9

Word in reg. 44(2A) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(2)(a)

F10

Words in reg. 44(2A) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(2)(b)

F11

Reg. 44(6) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(3)

F12

Reg. 44(7) substituted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 41(4)

Commencement

I1

Reg. 44 in force at 6.4.2009, see reg. 1(1)