Tax codes

A student must choose and advise MSD of a tax code appropriate to their circumstances. A student can change their tax code at any time.

All queries about the correct tax code for a student must be referred to Inland Revenue.

In general terms:

• where the Student Allowance payment is the client's highest or only source of income, the 'M' tax code should be used
• where the Student Allowance is not the student's main source of income a secondary or 'S' tax code should be used
• students with a Student Loan must use a tax code with the Student Loan (SL) repayment code

It may be appropriate for a student to have a tailored tax code that enables their tax to be deducted at a different rate to the 'standard' rates.

All queries about tailored tax codes must be referred to Inland Revenue.

if a student needs to reduce their Student Loan repayment deductions they can apply for a 'special deduction rate' on their secondary earnings or a 'repayment deduction exemption' if they are studying full-time.

All queries about a 'special deduction rate' or a 'repayment exemption' must be referred to Inland Revenue.