Open petition: Make student loan repayments a pre-tax deduction like business training costs.
Created by Mohamed Tarmohamed
Closes on
Businesses claim full tax relief on staff learning and development. Graduates repaying student loans fund the same outcome but receive no equivalent relief, creating marginal tax rates above 51% for some earners. Repayments should be deducted from gross salary before Income Tax and NI.
UK tax law allows businesses to deduct learning and development costs before tax, recognising education as an investment. Yet graduates repaying student loans — who made the same investment — receive no such relief. Repayments are collected after Income Tax and National Insurance, creating marginal rates exceeding 51% for basic-rate taxpayers. This is an inequitable and inconsistent application of tax policy that penalises individual investment in skills.
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This petition will stay open until 27 September 2026.