Student Loans and Self Assessment: What Musicians Need to Get Right

If you’re completing a Self Assessment tax return and you have (or had) a student loan, this is a section you can’t afford to rush.

We regularly see incorrect student loan entries leading to the wrong tax calculation -either repayments being missed or people being charged when they shouldn’t be.

In this guide, we explains what HMRC expects, what to check before you submit, and the most common mistakes musicians make.

Step 1: Confirm Whether You Have a Student Loan to Repay

When completing your tax return, HMRC will ask whether you have a student loan that is due for repayment.

Before ticking this box, make sure you:

• Know whether your loan is still active

• Understand which repayment plan you are on

This information directly affects whether repayments are calculated at all.

Why Your Student Loan Plan Number Matters

One of the most common errors we see is people selecting the wrong student loan plan.

Each plan has:

• A different repayment threshold

• Different rules around when repayments start

If you enter the wrong plan number:

• HMRC may calculate repayments when none are due, or

• You may underpay and face corrections later

Getting the plan number right is critical to ensuring an accurate tax bill.

Step 2: Check Your P60 for Student Loan Repayments

If you had any PAYE employment during the tax year, student loan repayments may already have been deducted through your salary.

You should:

• Review your P60

• Look at the bottom of the document for student loan deductions

• Enter these figures into your Self Assessment return

HMRC looks at all repayments together when calculating what is still due, so omitting PAYE repayments can distort the final figure.

Step 3: Declare Both Undergraduate and Postgraduate Loans

Another commonly overlooked issue is having more than one type of student loan.

If you have:

• An undergraduate loan and

• A postgraduate loan

you must notify HMRC that both loans are outstanding.

You do not need to:

• Enter the original loan amounts

• Calculate balances yourself

You simply need to tell HMRC that both loans are subject to repayment in the relevant tax year.

Step 4: Near the End of Repayment? Double-Check the Details

If you are:

• Close to the end of your repayment term, or

• Unsure whether HMRC has up-to-date information

it’s worth contacting the Student Loans Company directly.

You can:

• Check your balance online via your account

• Confirm your loan type and plan number

• Or contact them by phone for clarity

This ensures the information you include on your tax return is correct and current.

Complete This Section Last - But Prepare First

Student loan details are usually added towards the end of the Self Assessment process, but the preparation should happen earlier.

Before you submit your return, make sure you have:

• Confirmed your loan plan(s)

• Checked PAYE repayments on your P60

• Identified whether you have undergraduate, postgraduate, or both loans

• Verified details with the Student Loans Company if needed

Doing this upfront helps ensure the repayment figure calculated by HMRC is accurate.

Common Student Loan Mistakes to Avoid

• Selecting the wrong repayment plan

• Forgetting PAYE student loan deductions

• Declaring only one loan when two exist

• Assuming HMRC already has the correct information

Each of these can result in an incorrect tax calculation, and we don't want that!