For agents submitting Self Assessment tax returns for clients
From the 2024–2025 tax year onwards, a new box has been added to the Self Assessment tax return to report payrolled Benefits in Kind subject to Class 1A National Insurance contributions (NICs) only. This is specifically for student and postgraduate loan purposes.
Why This Change?
HMRC calculates student loan repayments based on total Pay As You Earn (PAYE) income declared on Self Assessment tax returns. If payrolled Benefits in Kind are included in this total, it could lead to incorrect student or postgraduate loan deductions.
Since loan repayments are not required on Benefits in Kind taxed through payroll with Class 1A NICs only, this new box allows these amounts to be reported separately from total PAYE income.
Who Is Affected?
This change impacts clients who:
- File a Self Assessment tax return
- Are repaying a student or postgraduate loan (or both)
- Receive payrolled Benefits in Kind subject to Class 1A NICs through their employer
What You Need to Do
For the 2024–2025 tax return:
Report the relevant Benefits in Kind amount in the appropriate box based on the submission method:
- Online tax return: Box labeled "Payrolled benefits included in pay from employer which affect your student loan repayments"
- SA102 paper tax return: Box labeled "Payrolled benefits included in box 1 which affect your student loan repayments"
For the 2023–2024 tax return and earlier:
Previously, HMRC systems could not distinguish between payrolled Benefits in Kind subject to Class 1A NICs only and other PAYE income. Agent Update Issue 112 provided steps on correctly reporting these to ensure accurate student and postgraduate loan repayments.
Refer to HMRC guidance for completing Self Assessment tax returns on GOV.UK.
