How do I repay from overseas?
If you move overseas and don’t pay tax in the UK or if you plan to leave the UK for more than three months, whether this is temporary or permanent, you may still need to make repayments directly to us. This section tells you how and how much you’ll repay
If you go overseas
If you’re leaving the UK for more than three months, after you’re due to repay, you’ll need to complete an Overseas Income Assessment Form so we can calculate any repayments.
On the Overseas Income Assessment Form you should provide us with details of your circumstances and income. You'll also need to provide evidence of your income or how you’re supporting yourself.
We’ll then send you a repayment schedule showing how much you need to pay each month.
- Overseas Income Assessment Form
- Evidence that can be submitted with an Overseas Income Assessment Form
The assessment is valid for 12 months so if you’re still overseas when your current schedule ends you’ll need to complete another form.
You must tell us if your name or contact details change so that we can contact you with important information about your loan or repayments.
How much you’ll repay
You’ll pay 9% of any income over the repayment threshold for the country you’re living in. Because of differences in living costs, the repayment threshold in another country could be different from the UK threshold. We update the thresholds each year to take account of price changes. See Overseas thresholds for more information.
We’ll use the average exchange rate for the previous UK calendar year to calculate your income in sterling. This will then determine your repayment schedule.
You‘re charged interest from the day your first payment is made until your loan is repaid in full or cancelled. This is added to the total amount you owe every month. The interest rate applied to your loan is also updated once a year in September, meaning it may increase or decrease.
The interest rate you pay is based on:
- The UK Retail Price Index (RPI) - currently at 1.6%; and
- Your circumstances.
|Circumstance A: While you’re studying|
While you’re studying and until April 6th after you finish or leave your course.
While you’re studying, up until the April after leaving your course or the April four years after the start of your course, whichever comes first.
|Interest:||Retail Price Index (RPI) + 3%|
|Circumstance B: Once you’ve left your course|
|From April 6th after leaving your course until the loan is repaid in full.|
|Interest:||Retail Price Index (RPI) + up to 3% depending on your income.
The income thresholds overseas will be different from those in the UK to take account of differences in living costs. Thresholds for each country are determined by World Bank data. See Overseas thresholds for more information.
|Circumstance C: If you don’t keep your details up to date|
|If you don’t to respond to our requests for information or evidence.|
|Interest:||Retail Price Index (RPI) + 3% will be applied to your loan, whatever your income, until we have all the information we need.|
|While you’re studying||Full-time students - While you’re studying and until 6 April after you finish or leave your course.
Part-time students – While you’re studying, up until the April after leaving your course or the April four years after the start of your course, whichever comes first.
|Retail Price Index (RPI) plus 3%|
|Once you’ve left your course||From 6 April after leaving your course until the loan is repaid in full||RPI plus up to 3% depending on your income. The income thresholds overseas will be different from those in the UK to take account of differences in living costs. Thresholds for each country are determined by World Bank data. See Overseas thresholds for more information.|
|If you don’t keep your details up to date||If you don’t to respond to our requests for information or evidence.||RPI plus 3% will be applied to your loan, whatever your income, we have all the information we need.|
The RPI figure will be updated in September based on the RPI figure in March of that year.
Find out your loan balance
There’s also a Balance Calculator to work out how much you have left to repay. You’ll need your most recent payslips or self assessment information. This is important as we won’t know what you’ve repaid until after the end of the tax year.
If your income changes while overseas
Normally your scheduled repayment amount is fixed for a 12 month period. However, you can apply for a reassessment at any time if:
- Your income level changes
- You move between countries with different thresholds.
If either of these apply and you wish to be reassessed, contact us on +44 141 243 3660
If you don’t keep in touch with us
While you are out of the UK, you must keep your account details up to date. If you don’t you may be charged a fixed amount which could be higher than the repayment amount due based on your actual income. We may also ask you to repay the full amount of loan, plus interest and penalties, in one lump sum.
If you don't respond to our requests for information or evidence interest will be charged on your loan balance at RPI+3% until we have all the information we need.
Allowing someone else to deal with your account
The Data Protection Act prevents us from discussing your account with anyone other than you. However, you can nominate a person to deal with your account on your behalf. This can be particularly useful when you’re overseas.
You can give us this authority in two ways:
Consent to Share
This is written or verbal authorisation which allows us to discuss your account information (excluding bank details) to a person you have nominated.
Power of Attorney
This is an official legal document where you can grant attorney to a third party to release or update information relating to your account.
For more information on how to set up Consent to Share or Power of Attorney read the section Allowing another person to access your account.