Employee Student Loan Repayments

HMRC are reminding employers about understanding the role of the employer in the student loan process as this is essential for reducing the risk of employees overpaying their student loan. HMRC communicates with employers regarding their employee’s student loan repayments.  Employers should be aware that student loan notices can be sent to them by HMRC either online or by post.

It is important to check the notice issued and use the following information:

• Start date shown on the notice
• Loan or plan type on the notice
• Stop date shown on the notice

Employers should continue to take student loan deductions until HMRC issues a notice to stop.

If employee earnings are above the respective student loan and postgraduate loan threshold and no deductions are being made, HMRC will issue a generic prompt notice to employers as a reminder. If deductions have still not started HMRC may contact the employer directly.

If employee earnings are below the respective student loan and postgraduate loan threshold, employers should update the employee record to reflect their student loan status and file the notice accordingly.

More detailed guidance can be found on the HMRC website: Student loan and postgraduate loan repayment guidance for employers – GOV.UK (www.gov.uk)

If we manage your payroll for you, we take care of the student loan notices and deductions on your behalf. To find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie.hunter@jsca.co.uk

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