Readers’ forum: Should we add student loan repayments in disclosure?

I have been assisting a new client with a tax investigation. She is self-employed and it is now clear that she has understated her profits for several years. She has admitted this and has made a disclosure to HMRC.

We are now working through the numbers to reach a settlement. There is one aspect of this which I have not come across before and where I would appreciate Taxation readers’ advice.

At the level of income she was declaring she was under the threshold for repaying her student loan but when the correct figures are used she was over the threshold for each year and therefore should have been making student loan repayments.

What are the mechanics for dealing with this? Will the loan repayments simply be included in the settlement figure or does a separate disclosure have to be made to the student loan company?

Further...