The regulatory impact assessment prepared for the 2000 regulations estimated the one-off costs to business to be between £40 million and £80 million over the first five years of operation from April 2000 (in net present value terms at 1999). Our most recent estimate of the recurring costs to business is in the region of £20 million per year.
The one-off administrative costs incurred by Her Majesty’s Revenue and Customs and the Student Loans Company in implementing student loan collection through the tax system was £16.25 million. In the 2005-06 financial year recurring administrative costs amounted to £15.25 million.1
1 All costs are given on a UK wide basis.