Are you using the right tax code?
18 July 2012
Recent changes to Student Loans mean that from 1 April 2012, all Student Loan borrowers with salary or wage income must use tax codes with “SL”, regardless of how much they earn.
You may have received a letter from Inland Revenue advising that we will be updating your tax code. From August 2012, we will be making these changes so that the right tax and Student Loan deductions are made from your Student Allowance.
Your tax code depends on how many sources of income you have, and whether you have a Student Loan. Student Loan repayments are deducted from your Student Allowance payment when you earn over the pay period repayment threshold of $367 a week. The amount to be deducted will depend on whether your Student Allowance is your main or secondary income.
Depending on your circumstances, you can apply to change the amount of your repayments. Full-time students who are working can apply for a repayment deduction exemption, while borrowers who have two or more jobs may apply for a special deduction rate for their secondary earnings.
Note: Your Student Allowance is considered income when you apply for the repayment deduction exemption or special deduction rate.
Find out more on Inland Revenue’s website:
