Guide
student loanrepaymentself-employedUKStudent Loan Repayments for UK Content Creators
If you have a student loan and earn money from content creation, you'll make repayments through Self Assessment. The process is different from employed repayments and catches many new creators off guard. This guide explains how it works for each loan plan type.
Last updated: February 26, 2026
Step-by-Step Guide
Identify your student loan plan type
Log into your SLC (Student Loans Company) account or check gov.uk to confirm your plan type. This determines your repayment threshold and rate.
Calculate your estimated repayment
If your total self-employment profit exceeds your plan threshold, multiply the excess by 9% (or 6% for postgraduate loans). Add this to your tax and NI estimate.
Budget for the repayment in your tax savings
Increase your tax savings percentage to account for student loan repayments. 30-35% of gross income is usually sufficient to cover income tax, NI, and student loan repayments.
Declare student loans on your Self Assessment
Your tax return asks whether you have a student loan and which plan type. Answer honestly — HMRC cross-references with SLC data.
Evaluate whether overpayment makes sense
For Plan 2 and Plan 5, overpayment usually doesn't make financial sense due to the write-off. For Plan 1 with a smaller balance, it might save money. Run the calculations or ask your accountant.
How student loan repayments work for self-employed creators
When you're employed, student loan repayments are deducted automatically from your payslip. When you're self-employed, they're calculated and collected through your Self Assessment tax return.
The key difference: employed repayments happen monthly based on each month's earnings. Self Assessment repayments are calculated on your entire annual profit and paid as a lump sum (or through payments on account). This means your January tax bill can include a substantial student loan payment you weren't expecting.
Your student loan repayment is calculated on your total self-employment profit (income minus expenses). If you also have employment income, the self-employment repayment is calculated on self-employment income only (your employer handles repayments on your salary separately).
Important: student loan repayments don't reduce your taxable income. They're not a tax deduction — they're a separate obligation calculated alongside your tax. Think of them as an additional charge on your income above the relevant threshold.
If your creator income pushes you above the repayment threshold, you'll start making repayments even if your employment salary alone was below it. This is the most common surprise for creators with day jobs who start earning significant side income.
Repayment thresholds and rates by plan type
Your plan type depends on when and where you studied. Check your plan type at gov.uk/repaying-your-student-loan.
Plan 1 (English/Welsh students who started before September 2012, and Scottish students):
- Repayment threshold: £24,990/year
- Repayment rate: 9% of income above the threshold
- Written off: 25 years after the April you were first due to repay
Plan 2 (English/Welsh students who started after September 2012):
- Repayment threshold: £27,295/year
- Repayment rate: 9% of income above the threshold
- Written off: 30 years after the April you were first due to repay
Plan 4 (Scottish students from 2021 onwards):
- Repayment threshold: £31,395/year
- Repayment rate: 9% of income above the threshold
- Written off: 30 years after the April you were first due to repay
Plan 5 (English students starting from September 2023):
- Repayment threshold: £25,000/year
- Repayment rate: 9% of income above the threshold
- Written off: 40 years after graduation
Postgraduate Loan:
- Repayment threshold: £21,000/year
- Repayment rate: 6% of income above the threshold
- Written off: 30 years after the April you were first due to repay
Example calculation (Plan 2, £35,000 self-employment profit):
Repayment: 9% × (£35,000 - £27,295) = 9% × £7,705 = £693.45
This is on top of your income tax and National Insurance.
Strategies for managing student loan repayments as a creator
Student loan repayments are inevitable above the threshold, but there are considerations worth understanding.
Should you overpay? For most Plan 2 borrowers (the majority of current UK student loan holders), the answer is usually no. With a 30-year write-off period and interest that can reach RPI + 3%, most graduates will never fully repay their loan before it's written off. Making voluntary overpayments means paying more in total than if you'd let the write-off happen. Only overpay if you're confident you'll repay in full significantly before the write-off date.
Plan 1 is different. Plan 1 loans have lower interest rates and lower balances. Many Plan 1 holders will repay in full before the write-off date, so overpaying can save money on interest. Run the numbers for your specific balance.
Impact on your Self Assessment bill: Budget for student loan repayments alongside tax and NI. On £40,000 profit (Plan 2), your student loan repayment is approximately £1,143. Add this to income tax (£5,486) and NI (£1,826) for a total bill of roughly £8,455 — about 21% of your income.
Operating through a Ltd company: If you pay yourself a salary below the student loan threshold and take the rest as dividends, you may reduce your student loan repayments. Dividends are not subject to student loan repayments for employed directors. However, Self Assessment catches self-employment profits. This is a nuanced area — consult an accountant for advice specific to your situation.
Keep track of your balance: Check your student loan balance and plan type through your Student Loans Company (SLC) online account. This information is essential for financial planning and determining whether overpayment makes sense.
Pro Tips
- Student loan repayments are not tax-deductible — they're a separate obligation on top of income tax and NI
- Plan 2 borrowers should rarely overpay. Most will never clear the full balance before the 30-year write-off
- Budget 30-35% of gross creator income for tax, NI, and student loan repayments combined
- If you have both employment and self-employment income, student loan repayments are calculated separately on each income source
- Dividends from your own Ltd company are not subject to student loan repayments if you're a director. Consult an accountant for details