HMRC has clarified how to report student loans under new Making Tax Digital (MTD) rules for earners with over £50,000 in qualifying income, including buy to let landlords and self employed, from August
The latest agent update, HMRC set out how to deal with student loans under MTD, another complexity of the new mandatory quarterly reporting system.
Based on the assumption that the individual taxpayer is using MTD software, which may of course not be the case with the high number of unrepresented taxpayers caught by the new quarterly reporting regime, HMRC set out the approach to use.
Self employed, sole traders and landlords have to report quarterly income from self-employment and property rentals to HMRC if their qualifying income exceeds £50,000.
The MTD software will hold details of the taxpayer’s student loan plan type (1, 2, 4 or 5) or postgraduate loan, or both, using information from the Student Loans Company and sent to HMRC.
