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Student loan and postgraduate loan repayment guidance for companies

Student loan and postgraduate loan repayment guidance for companies

Stopping student loan and PGL deductions

Stop making education loan or PGL deductions whenever:

SL2 or PGL2 ‘Stop Notice’ received

Stop making deductions through the very very first payday that is available the deduction stop date shown from the notice. The ‘first available payday’ could be the very first payday upon which it is practical to use that notice.

In the event that debtor continues to be used by you and you use Basic PAYE Tools with this worker edit the worker details when you look at the company database. This can be done by detatching the education loan or PGL debtor indicator and keep consitently the SL2 , or PGL2 ‘Stop Notice.’

In the event that debtor isn’t any longer used you have not submitted leaver details to HMRC by you and:

  • keep the box headed ‘Enter ‘Y’ if education loan deduction is always to be made’ blank
  • submit leaver information in genuine Time Information (RTI ) and supply worker with P45 parts 1A, 2 and 3
  • You should keep the SL2 or PGL2 ‘Stop Notice’ if you have submitted leaver details.

    You can’t stop making deductions because your worker asks you to definitely. Your worker should contact the SLC when they think they’ve overpaid their loan.

    Worker dies

    Usually do not make any deductions from any re payments made after a worker dies since these re re payments aren’t susceptible to Class 1 National Insurance efforts. This is applicable although the re payment may relate with an interval just before death, as an example, unpaid wages.

    Worker leaves

    Whenever an worker departs, verify that you’re making education loan or PGL deductions.

    When you have gotten:

    In the event that you get either:

  • fill in P45 leaving package 5 blank
  • deliver leaver information to HMRC in RTI and provide your employee P45 components 1A, 2 and 3
  • Worker has one or more work

    If a worker has one or more task you really need to ignore profits through the other boss.

    In the event that worker has several work with you stick to the aggregate rules when they use. Otherwise treat both employments individually.

    Change of pay period

    In the event that period amongst the re re payments of an employee’s earnings modifications, for instance, from weekly to monthly, you will need to adjust the deductions when it comes to earnings that are new.

    When you yourself have included a repayment currently produced in the initial for the new longer durations, you ought to simply take the payment already made, while the deduction exercised about it, under consideration whenever working out of the student loan or PGL deduction when it comes to brand new duration all together.


    You spend a member of staff repaying on Plan 1 ВЈ500 regular. The pay period changes to monthly within the week that is third of thirty days. The monthly pay is ВЈ2,000. The ВЈ2,000 re payment in week 4 consists of the 2 ВЈ500 payments produced in months 1 and 2 plus ВЈ1,000 for months 3 and 4.

    You will find extra information about what to accomplish in the event that interval between your re re payment of an employee’s profits alterations in Chapter hands down the guide to PAYE and National Insurance efforts.

    The guidance provided for nationwide Insurance efforts purposes additionally relates to student loan deductions.

    Mistakes student that is deducting or PGL repayments

    Present taxation 12 months

    You can repay it to the borrower during the current tax year you should do so, amending your Year-To-Date payroll records if you have made an over deduction and.

    It phone the Employer Helpline if you cannot repay.

    If there’s been an under-deduction and you may gather it from the debtor into the present income tax 12 months you really need to do this. Correct your Year-To-Date payroll documents to actually reflect what was deducted.

    It phone the Employer Helpline if you cannot collect.

    During each duration you are able to just gather a extra quantity less than, or add up to, the quantity that is due to be deducted for the reason that duration.

    (*that is, ВЈ15

    You might recover the rest of the ВЈ10 under-deduction in subsequent pay periods after the rules that are above.