The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009

Made: 20th March 2009

Coming into operation:

The Department for Employment and Learning[^f00001], makes the following Regulations in exercise of the powers conferred by Articles 3(2) to (5) and 8(4) of the Education (Student Support) (Northern Ireland) Order 1998[^f00002] and now vested in it[^f00003].

PART 1 — General

Citation and commencement

1

• (1) These Regulations may be cited as the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 and, subject to paragraphs (2) and (3), come into operation on 6th April 2009.

• (2) Regulations 2(2), 16 and Part 6 come into operation on 1st September 2009.

• (3) Regulations 11(5)(d) and 13 come into operation on 21st December 2009.

Revocations

2

• (1) The Rules listed in Schedule 1 are revoked.

• (2) Regulations 4(4), 88 and 89 of the Education (Student Support) Regulations (Northern Ireland) 2009[^f00004] are revoked.

Interpretation

3

In these Regulations—

• “the Order” means the Education (Student Support) (Northern Ireland) Order 1998;

• “the 1970 Act” means the Taxes Management Act 1970[^f00005];

• “the 1988 Act” means the Income and Corporation Taxes Act 1988[^f00006];

• “the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003[^f00007];

• ...

• ...

• “the 2009 Regulations” means the Education (Student Support) (No. 2) Regulations (Northern Ireland) 2009;

• “academic year” means the period from 1st September in any year to 31st August of the following year, regardless of whether this is, in fact, the period over which a borrower’s course runs;

• “borrower” means a person to whom the Department has lent money pursuant to regulations made under Article 3 of the Order and who has not received a notice from the Department that it has been repaid or cancelled;

• “Department” means the Department for the Economy;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “National Insurance number” means the National Insurance number allocated within the meaning of the Social Security (Contributions) Regulations 2001[^f00010];

• “overseas provisions” means the requirements of these Regulations in Part 5;

• “overseas borrowers” means borrowers making or due to make repayments in accordance with Part 5;

• “repayment” means repayment of a student loan;

• “repayment threshold” means an amount given in regulation 24(6);

• “repayment threshold Year” means: the period from 6th April to 5th April of the following year;

• “retail price index” means the RPI All Items Index published by the Office for National Statistics;

• “standard interest rate” means, in relation to a loan, the greater of—zero, orthe percentage increase in the retail price index between the two Marches immediately before the commencement of the academic year in which the loan bears interest;

• “student loan” means the total outstanding principal, interest, penalties and charges owed by a borrower to the Department pursuant to these or any other regulations made under Article 3 of the Order excluding any interest, penalties or charges payable under Part 3 or 4;

• “the Taxes Acts” has the same meaning as it has in the 1970 Act;

• “tax year” –for the purposes of Part 4 and any provision of Part 2 relating to Part 4 means the period from 6th April to 5th April of the following year; subject to sub-paragraph (c), for the purposes of Part 3 and any provision of Part 2 relating to Part 3 means any year of assessment for the purposes of the 1970 Act;for the purposes of regulations 31 and 35(1) and (2) means the period from 6th April to 5th April of the following year and

• “tax year 2009-10” for the purpose of Part 3 means the tax year beginning on 6 th April 2009 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);

• “the tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure (Upper Tribunal) Rules 2008[^f00011], the Upper Tribunal.

Application: general

4

These Regulations apply to repayments of student loans made under the Order.

Service by post or electronic communication

5

• (1) Any notice or other document which is authorised or required to be given, served or issued under these Regulations may be sent by ordinary post or by an electronic format.

• (2) In particular, any notice which the Department may give to HMRC may be transmitted electronically, and for these purposes a notice is transmitted electronically where the content and form of a notice is sent and received by electronic media between computer systems operated by the Department and HMRC respectively.

PART 2 — Provisions Applicable to all Repayments

Interpretation

6

• (1) In this Part—

• “2006 Support Regulations” means the Education (Student Support) Regulations (Northern Ireland) 2006[^f00012].

• “date of receipt” in relation to a repayment is to be construed in accordance with regulation 12;

• “designated course” has the same meaning as in the 2009 Regulations;

• “designated distance learning course” has the same meaning as in the 2009 Regulations;

• “designated part-time course” has the same meaning as in the 2009 Regulations;

• “disability–related benefit” means long-term incapacity benefit or short-term incapacity benefit at the higher rate, disability living allowance and industrial injuries benefit, all payable under the Social Security Contributions and Benefits (Northern Ireland) Act 1992[^f00013] armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011, personal independence payment under Part 5 of the Welfare Reform (Northern Ireland) Order 2015,, or the amount of any disability premium and severe disability premium included in the applicable amount in calculating the income support payable under the Income Support (General) Regulations (Northern Ireland) 1987[^f00014];

• “distance learning fee loan” means a loan for fees made to an eligible distance learning student pursuant to the 2009 Regulations made by the Department under Article 3 of the Order;

• “end-on course” means—a full-time first degree course (other than a first degree course for the initial training of teachers) which, disregarding any intervening vacation, a student begins immediately after ceasing to attend a full-time course mentioned in paragraph (2) for which the student received or was entitled to receive an award made under the Students Awards Regulations (Northern Ireland) 1998[^f00015] (other than an award within the meaning of the Students Awards Regulations (Northern Ireland) 2003[^f00016]), or financial support under Student Support Regulations; anda full-time honours degree course beginning on or after 1st September 2006 which, disregarding any intervening vacation, a student begins immediately after ceasing to attend a full-time foundation degree course and for which the student received or was entitled to receive any of the financial support referred to in paragraph (a);

• “part-time fee loan” means a loan for fees made to an eligible part-time student pursuant to the 2009 Regulations made by the Department under Article 3 of the Order; and

• “Student Support Regulations” means any Regulations made in or in relation to any academic year commencing in or after 1998 pursuant to Article 3 of the Order and which regulate or define the entitlement of a borrower to loans and the extent of any financial support available including Regulations made after the date of these Regulations.

• “total charge for credit rules” means rules made under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order.

• (2) The courses mentioned in this paragraph are a course for the Diploma of Higher Education, and a course for the Higher National Diploma or Higher National Certificate of—

• (a) the Business & Technician Education Council; or

• (b) the Scottish Qualifications Authority or Qualifications Scotland.

Functions of HMRC

7

• (1) HMRC must collect repayments from borrowers in accordance with Parts 3 and 4, and the provisions of section 1 of the 1970 Act apply for those purposes as they apply for the purposes of income tax.

• (2) HMRC must, at such time and in such manner as the Treasury and the Department of Finance and Personnel (acting concurrently) may direct, account to the Department for, and pay to it, the sums estimated by HMRC (in the manner so directed) to have been collected by it as repayments in accordance with Parts 3 and 4.

• (3) Repayments do not include any interest, penalties or charges payable under Part 3 or 4 and HMRC will cause any such sums which it recovers to be paid, at such times and under such regulations as the Treasury may from time to time prescribe, to accounts to be entitled “The Account of Her Majesty’s Exchequer”, at the Bank of England and the sums so paid form part of the Consolidated Fund of the United Kingdom.

Officers of Revenue and Customs

8

Any legal proceedings or administrative act authorised by or done for the purposes of these Regulations begun by an officer of Revenue and Customs may be continued by another officer; and any officer may act for any other division or area.

Penalties in relation to Parts 3 and 4

9

• (1) Section 98 of the 1970 Act (special returns etc) applies for the purposes of repayments under Parts 3 or 4 as if any reference in that section to a provision in the Table is a reference to a provision in those Parts 3 or 4 with the exception of regulations 25, 28, 55 and 56.

• (2) Schedule 38 to the Finance Act 2012 (Tax Agents: Dishonest Conduct) applies for the purpose of repayments under Part 3 or 4 as it applies for the purposes of income tax.

• (3) For tax years—

• (a) ending on or before 5th April 2008, sections 100 (determination of penalties by officer of HMRC), 100A (provisions supplementary to section 100) and 100B (appeals against policy determinations) of the 1970 Act apply to the penalties set out in regulation 35(3) in connection with repayments under Part 3 as they apply in connection with income tax;

• (b) commencing on or after 6th April 2008, where the date on which the return is due to be filed is on or after 6th April 2009, Schedule 24 to the Finance Act 2007[^f00017] (penalties for errors) applies in relation to the assessment of penalties and appeals against the assessment of penalties in connection with Part 3 as it applies to penalties in connection with income tax.

• (4) Sections 100 (determination of penalties by officer of Revenue and Customs), 100A (provisions supplementary to section 100) and 100B (appeals against penalty determinations) of the 1970 Act apply to penalties other than those outlined in regulation 35(3) and (4) in connection with repayment under Part 3 and all penalties under Part 4 as they apply to penalties in connection with income tax.

• (5) Section 100C (penalty proceedings before the tribunal), 100D (penalty proceedings before court), 102 (mitigation of penalties), 103(3) and (4) (time limit for penalties), 103A (interest on penalties), 104 (savings for criminal proceedings) and 105 (evidence in cases of fraudulent conduct) of the 1970 Act apply to penalties in connection with repayments under Part 3 or 4 as they apply in connection with income tax.

• (6) Sections 112 to 115A of and Schedule 3A to the 1970 Act (documents) apply to assessments, returns or other documents made, required, issued, served, sent or lodged for the purposes of or in connection with repayments under Parts 3 or 4 as they apply to documents for the purposes of or in connection with income tax.

• (7) Section 118(2) of the 1970 Act (failure to act within limited time) applies in relation to anything required to be done under Parts 3 or 4 as it applies in relation to anything required to be done under that Act.

• (8) For the purposes of these Regulations, the amount of a repayment covered by any assessment under Part 3 is not deemed finally determined until that assessment can no longer be varied, whether by the tribunal on appeal or by the order of any Court.

Interest and penalties

10

• (1) Interest and penalties charged under Parts 3 or 4 are not added to the principal outstanding, are not part of the loan, and payments of such interest or penalties are not credited against the principal outstanding.

• (2) Any repayments received by the Department will be applied in reduction or satisfaction of the liabilities of a borrower in the following order:—

• (a) first, any outstanding penalties, costs, expenses or charges under regulation 19 or 20;

• (b) second, any outstanding penalties, costs, expenses or charges under Part 5;

• (c) third, any outstanding interest;

• (d) fourth, any outstanding principal, which will be reduced or satisfied from the date of receipt.

Timing of repayments: general

11

• (A1) In this regulation—

• (a) paragraphs (1) to (2E) relate to the timing of repayments for a loan;

• (b) paragraphs (3) to (10) relate to the notification of repayments for a student loan.

• (1) A borrower may repay all or any part of a student loan to the Department at any time, by making direct payments to the Department.

• (2) Subject to paragraphs (2A) to (2D), a borrower is not required to repay any part of the student loan before the start of the following tax year commencing on 6th April after a borrower ceases to be eligible for financial support under regulations made pursuant to Article 3 of the Order, whether by reason of having completed that course or otherwise.

• (2A) Where a borrower obtains a student loan which is a distance learning fee loan or a part-time fee loan, the borrower is not required to repay any part of that student loan until the earlier of—

• (a) the start of the following tax year commencing on 6th April after the borrower ceases to be eligible for financial support under regulations made pursuant to Article 3 of the Order whether by reason of having completed that course or otherwise; or

• (b) the start of the following tax year commencing on 6th April after the fourth anniversary of the course start date.

• (2B) Subject to paragraphs (2C) and (2D), a borrower who obtains a student loan and who changes their mode of study between full-time, (other than a designated distance learning course), and part-time study is required to repay—

• (a) where there is a change from a full-time course to a part-time course, in accordance with paragraph (2A);

• (b) where there is a change from a part-time course to a full-time course before the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2);

• (c) where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2A).

• (2C) A borrower who obtains a student loan and who changes their mode of study between a designated distance learning course and a designated part-time course is required to repay in accordance with paragraph (2A).

• (2D) A borrower who obtains a student loan and who changes their mode of study, in accordance with the 2009 Regulations, between a designated course, (which is not a designated distance learning course), and a designated distance learning course is required to repay—

• (a) where there is a change from a designated course into a designated distance learning course, in accordance with paragraph (2A);

• (b) where there is a change from a designated distance learning course into a designated course before the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2);

• (c) where there is a change from a designated distance learning course into a designated course and the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2A).

• (2E) Paragraphs (2) to (2D) have effect notwithstanding the fact that a borrower may become eligible for further financial support under regulations made pursuant to Article 3 of the Order.

• (3) Subject to paragraphs (7) and (8), the Department must notify the borrower and HMRC of—

• (a) the first or, as the case may be, next tax year in respect of which the borrower may be required to make repayments under Part 3;

• (b) the date on and after which a borrower may be required to make repayments by deductions from earnings under Part 4;

• (c) the tax year in which the borrower will cease to be required to make repayments under Part 3 because of the occurrence of a relevant event; and

• (d) the date on and after which a borrower will cease to be required to make repayments by way of deduction from earnings under Part 4 because of the occurrence of a relevant event.

• (4) For the purposes of paragraph (3)(c), a “relevant event” occurs when—

• (a) the loan has been repaid in full to the Department;

• (b) an amount sufficient to repay the balance owing to the Department is likely to be received by HMRC under Part 4 or by the Department directly from overseas borrowers by 30th April in the tax year immediately following the tax year in which the notice is issued; or

• (c) the loan has been cancelled.

• (5) For the purposes of paragraph (3)(d), a ‘relevant event’ occurs when—

• (a) the loan has been repaid in full to the Department;

• (b) an amount sufficient to repay in full the balance owing to the Department is likely to be received by HMRC under Parts 3 and 4 and by the Department directly from overseas borrowers by the date given in the notice;

• (c) the loan has been cancelled; or

• (d) the borrower has undertaken to repay the loan in full after the date given in the notice in accordance with regulation 13 and meets the criteria of that regulation.

• (6) The Department must not issue a notice under paragraph (3)(c) after the end of the calendar year during which the tax year specified in the notice ends.