Student loan and postgraduate loan payment guidance for companies

Stopping education loan and deductions that are PGL

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 end date shown regarding the notice. The ‘first available payday’ could be the very very very first payday upon which it is practical to utilize that notice.

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

In the event that debtor is not any longer used by both you and you have got maybe not submitted leaver details to HMRC:

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

    You simply cannot stop making deductions because your worker asks one to. Your worker should contact the SLC when they think they usually have overpaid their loan.

    Worker dies

    Do not make any deductions from any re payments made after a worker dies as they re re payments aren’t susceptible to Class 1 National Insurance efforts. This is applicable although the re re payment may relate solely to a period of time ahead of death, as an example, unpaid wages.

    Worker leaves

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

    For those who have gotten:

    In the event that you get either:

  • fill in P45 leaving field 5 blank
  • Send leaver information to HMRC in RTI and give your employee p45 right components 1A, 2 and 3
  • Worker has one or more work

    If a member of staff has one or more task you ought to ignore profits through the other company.

    In the event that worker has one or more 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 involving the re re payments of a employee’s profits modifications, as an example, from weekly to monthly, you ought to adjust the deductions when it comes to earnings that are new.

    For those who have included a repayment currently produced in the very first of this new longer durations, you need to make the payment already made, as well as the deduction worked out upon 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 Arrange 1 ВЈ500 regular. The pay interval changes to monthly within the week that is third of thirty days. The month-to-month pay is ВЈ2,000. The ВЈ2,000 re payment in week 4 comprises of the 2 ВЈ500 payments manufactured in months 1 and 2 plus ВЈ1,000 for days 3 and 4.

    There is additional information on just what to accomplish in the event that period amongst the re payment of a employee’s profits alterations in Chapter one of the guide to PAYE and National Insurance contributions.

    The guidance offered 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.

    If you fail to repay it mobile the Employer Helpline.

    If there’s been an under-deduction and you may collect it through the debtor within the tax that is current you need to achieve this. Correct your Year-To-Date payroll documents to mirror the thing that was really deducted.

    It phone the Employer Helpline if you cannot collect.

    During each duration you are able to only gather an amount that is additional than, or corresponding to, the total amount that is due to be deducted for the reason that duration.

    (*that is, ВЈ15

    You may possibly recover the rest of the ВЈ10 under-deduction in subsequent pay durations after the above guidelines.

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