If they say that they have a student loan or postgraduate loan, or both, you should to start making these deductions from the next payday.įind more information in the PAYE and National Insurance contributions guidance. Employees seconded to work in the UK by an overseas employerĮmployees seconded to work in the UK by an overseas employer should fill in a starter checklist. If your employee does not know their plan or loan type they should go to the repaying your student loan guidance to find out.ĭo not make any deductions in arrears. You should start making deductions from the next payday. there is a gap since their last employment.they did not tell you, or indicate on their starter information they were a student loan borrower.If you receive an employee’s P45 after they have started to work for you, ask them to confirm their plan or loan type if: If your employee thinks they have overpaid their deductions they should contact Student Loans Company - repayment enquiries. check the details on the PGL1 and update your payroll software if needed.update your payroll software and start making deductions using the new plan type at the next available payĭay if this is different to the one you are currently using.check the plan type on the SL1 start notice you have just received.for whom you’re already making deductions you should:.who claims never to have had a student loan, start making deductions in line with the start notice and continue doing so unless HMRC tells you otherwise, then file away the SL1 or PGL1 start notice.you have never employed, contact the Employer helpline, HMRC will investigate and contact you again if necessary, file away the SL1 or PGL1 start notice.If you receive a SL1 or PGL1 start notice for someone: The worker will account for student loan obligations in their own tax return.įind out more about deemed employer responsibilities under off-payroll working rules. If you’re operating off-payroll you are not responsible for deducting student or postgraduate loan repayments for workers engaged through their own companies. Check the student loan recovery thresholds. When the employee is on more than one plan, start deductions for the plan with the lowest recovery threshold until you get a SL1. Defaulting to Plan 1 is only available for Plan 1, Plan 2 or Plan 4 loans. If they cannot tell you, use Plan 1 in your payroll software until you get a student loan start notice (SL1). If your employee does not know which plan or loan they’re on, ask them to go to the repaying your student loan guidnace. you receive a generic notification service ( GNS) student loan or postgraduate loan, or both, reminder - ask your employee to confirm their plan or loan type, or both.HMRC sends you a PGL1 start notice - this will tell you they have a postgraduate loan.HMRC sends you a SL1 start notice - this will tell you which plan type to use.your new employee fills in a starter checklist showing they have a student loan and or postgraduate loan - the checklist should tell you which plan or loan type, or both to use.your new employee tells you they’re repaying a student loan - ask your employee to confirm their plan or loan type, or both.your new employee’s P45 shows deductions should continue - ask your employee to confirm their plan or loan type, or both.You will need to include these on your Full Payment Submission if any of the following apply: Start making student loan or postgraduate loan deductions, or both, from the next available payday using the correct plan or loan type or both. Your employee may be liable to repay a postgraduate loan at the same time as a student loan (Plan 1 or Plan 2 or Plan 4). Use the same gross pay amount that you would use to work out your employer’s secondary Class 1 National Insurance contributions. You should work out the correct figure of employee earnings on which student loan and postgraduate loan deductions are due. Starting student loan and postgraduate loan deductions - checking plan and loan type Postgraduate loans - £21,000 annually (£1,750 a month or £403.84 a week).Įmployees repay 6% of the amount they earn over the threshold for postgraduate loan. Plan 4 - £25,375 annually (£2,114.58 a month or £487.98 a week)Įmployees repay 9% of the amount they earn over the threshold for Plan 1, 2 and 4.With effect from April 2022, the thresholds for making student loan deductions are:
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