The Education (Student Loans) (Repayment) (Amendment) Regulations 2013

EXPLANATORY NOTE

(This note is not part of the Regulations)

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(c.30).

Regulations 3 to 18 amend the Principal Regulations.

Regulation 3 adds loans made under the Further Education Loans Regulations 2012 (S.I. 2012/1818) to the definition of post-2012 student loans in the Principal Regulations. Regulations 3 and 5 provide for the cancellation of a borrower’s liability in relation to loans for Access to HE Diplomas.

Regulations 4 and 9 substitute new penalties, for dishonest conduct of tax agents, for those in the Principal Regulations.

Regulation 6 provides for the transfer of small credit balances between two types of loan.

Regulation 7 sets out a default interest rate where other provisions of regulation 21A(2) do not apply and provides interest rates for borrowers where they wish to settle their account in full or repay the remaining balance by direct debit at the end of their loan term.

Regulation 8 sets out the repayment threshold for a borrower who has two types of loan.

Regulation 10 amends the definition of Real Time Information employers to exclude certain employers from becoming Real Time Information employers from 6 April 2013.

Regulations 11 and 12 impose requirements on borrowers to specify which type of loan they have on or after 6 April 2016 and regulation 13 imposes a default repayment threshold where borrowers fail to meet the requirements.

Regulations 14 and 18 amend how penalties are imposed where there is a failure to make returns under regulations 59B or 59E of the Principal Regulations.

Regulation 15 inserts new regulations 59BA and 59BB into the Principal Regulations. New regulations 59BA and 59BB make provision for exceptions from the requirement in regulation 59B to deliver information on or before the making of a payment.

Regulation 16 amends regulation 59E to extend the time limit and the categories of employers who are not required to deliver information to Her Majesty’s Revenue and Customs regarding a payment on or before making the payment to employees. The employers specified in regulation 59E(1), which includes those employers whom Her Majesty’s Revenue and Customs has directed are unable to file using an approved method of electronic communications, are for the tax year 2013-14 entitled to file in accordance with the provisions in the Principal Regulations which do not relate to Real Time Information employers.

Regulation 17 removes the requirement to specify the tax year to which the return relates, as it is unnecessary, and it corrects typographical errors.

A Tax Information and Impact Note covering regulations 10 and 14 to 18 of this Instrument was published on 15th March 2012 alongside the Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822). This has been updated as a result of changes to the impacts as a result of the year long Real Time Information pilot and is available on the Her Majesty’s Revenue and Customs’ website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. An impact assessment has not been produced for the regulations which are not covered by the Tax Information and Impact Note because they have no impact on businesses or civil society organisations. The Explanatory Memorandum is published alongside the instrument on www.legislation.gov.uk.