If you are self-employed there is no payroll to take your student loan repayments, so HMRC collects them through Self Assessment instead. The same applies if you complete a Self Assessment return for another reason, for example because you have rental income or a second income. The rate and threshold are the same as for employees: 9% of income over £25,000 a year on Plan 5.
GOV.UK says HMRC works out how much you repay from your Self Assessment tax return, based on your income for the whole year, and you pay it at the same time as your tax. For a sole trader, the self-employment part of that income is profit after allowable expenses, not turnover.
Example 1: self-employed only. A Plan 5 borrower has £32,000 of self-employed profit in 2026/27. The repayment is 9% × (£32,000 − £25,000) = £630.00, payable with their tax bill.
If you also have a job, your employer still takes repayments through payroll when your pay is over the monthly or weekly threshold. Your Self Assessment return then works out the repayment on your combined income for the year, and GOV.UK says HMRC deducts what you have already repaid through your salary.
Example 2: a salary of £20,000 (below the monthly threshold, so nothing is taken by payroll) plus £12,000 of self-employed profit. Combined income is £32,000, so the repayment due through Self Assessment is 9% × £7,000 = £630.00.
Example 3: a salary of £30,000, on which payroll takes about £450.00 over the year, plus £8,000 of profit. The total due on £38,000 is £1,170.00. After the £450.00 already paid, about £720.00 is left to pay with the return.
Check your payslips or P60 for the amount repaid through payroll. GOV.UK says you need to include it on your tax return.
HMRC uses your total annual income, including any workplace, private or State Pension, when it works out repayments through Self Assessment. You repay only if the total is over the threshold.
| What | Deadline |
|---|---|
| Tell HMRC you need to file (if you are new to Self Assessment) | 5 October 2027 |
| Paper return | 31 October 2027 |
| Online return | 31 January 2028 |
| Pay tax and student loan repayment due | 31 January 2028 |
These follow the standard Self Assessment dates on GOV.UK: register by 5 October after the tax year, file a paper return by 31 October or online by 31 January, and pay by 31 January. A late return starts with a £100 penalty.
Many self-employed people make 'payments on account': two advance payments towards the next year's bill, due on 31 January and 31 July. GOV.UK describes these as payments towards your tax, including Class 4 National Insurance. Its guidance on the balancing payment due on 31 January says that payment also includes anything you owe for student loans if you are self-employed. So the student loan part usually arrives as one sum in January rather than being spread across the two instalments, and it is worth setting money aside through the year.
Plan 5 interest is the same for everyone, so being self-employed does not change the rate. On Plan 2 it can, because Plan 2 interest depends on income, and the SLC uses your Self Assessment figures to set it after the filing deadline.
If you start working for yourself mid-year, payroll stops when you leave your job and the rest is settled through your return. If you go the other way, your new employer starts deductions from the next payday once it has your starter checklist, P45 or an HMRC start notice.
Keep your business records, your P60 from any job, and your SLC annual statement. If HMRC or the SLC query the figure, these show how it was reached. Your annual statement shows repayments received, so you can check that what you paid through Self Assessment has reached your loan.
Use the calculator with your expected profit (or combined income) as your yearly income to see the repayment.
Sources: GOV.UK: how much you repay · GOV.UK: how you repay · GOV.UK: Self Assessment deadlines · GOV.UK: payments on account · GOV.UK: register for Self Assessment. Checked 29 October 2026.
Last checked: 29 October 2026. Estimates only, not financial advice.
Through Self Assessment. HMRC works out 9% of income over £25,000 for the year from your return, and you pay it with your tax by 31 January.
No. Your return works out the repayment on your combined income, and HMRC takes off what you already repaid through payroll.
GOV.UK describes payments on account as covering tax and Class 4 NI, and says the 31 January balancing payment includes anything owed for student loans if you are self-employed.