Compare your student loan repayments under PAYE and Self Assessment systems. Discover which method could be more favorable for your situation.
PAYE treats each employment separately, while Self Assessment aggregates all income sources.
2012-2023 students (England/Wales)
Employment 1
Threshold: £27,295 per year
Rate: 9.0% above threshold
Monthly threshold: £2,275
Annual Repayment
£243
Payment Method
12 payments per year
Per Payment
£20
Annual Repayment
£243
Payment Method
Single payment on 31 January following tax year end
Total Income
£30,000
Repayments are identical
Multiple Employments: Under PAYE, each employment is treated separately for threshold purposes. Under Self Assessment, all income is aggregated.
Payment Timing: PAYE spreads repayments throughout the year, while Self Assessment requires a lump sum payment on 31 January.
Variable Income: If your income varies significantly within the year, the timing of earnings can affect total repayments under PAYE.
The most significant differences between PAYE and Self Assessment repayments typically occur when you have:
If you have multiple income sources that individually fall below the threshold but collectively exceed it, you may pay less under Self Assessment than PAYE.
If you're experiencing significant differences between PAYE and Self Assessment calculations, consider speaking with a tax advisor or contacting HMRC for guidance on your specific situation.