(This note is not part of the Regulations)
These Regulations are made under powers conferred by Articles 3(2) and 8(4) of the Education (Student Support) (Northern Ireland) Order 1998. The Regulations will be subject to the negative resolution procedure before the Assembly and is scheduled to come into operation on 6th April 2010.
The Regulations amends the principal Regulations – The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009, S.R 2009 No. 128 which provide the statutory framework for the collection and repayment system for income-contingent repayment (ICR) student loans. For most borrowers repayment is through the tax system, involving employers and HM Revenue and Customs (HMRC). Loan accounts are administered by the Student Loans Company (SLC), which receives information from HMRC about repayments made through the tax system.
Regulation 5 amends regulation 24(3)(f) of the principal Regulations so that any loss in respect of which relief is given under section 83, 118 and 120 of the Income Tax Act 2007 are included in the list of reliefs to be deducted for the purpose of calculating a borrower’s total income under regulation 24(2) of the principal Regulations.
Regulation 6 applies the provisions of Part 5A of the Taxes Management Act 1970 to a determination made under regulation 57 of the principal Regulations.
Regulation 7 amends regulation 63 of the principal Regulations so as to apply certain penalties under Schedule 56 of the Finance Act 2009, which are being introduced from 6th April 2010, to employers who make late payments of student loan repayments to HMRC.
Regulations 7 and 8 remove references in the principal Regulations to regulations 202 and 203 of the Income Tax (Pay As You Earn) Regulations 2003 (“PAYE Regulations”).These changes mirror amendments being made to the PAYE Regulations.
An impact assessment has not been prepared in respect of this instrument as it has no impact on the cost of business, charities or voluntary bodies.