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Student and postgraduate loan deductions

Produced by Tolley in association with
Employment Tax
Guidance

Student and postgraduate loan deductions

Produced by Tolley in association with
Employment Tax
Guidance
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HMRC is responsible for the collection of student loan deductions (SLD) under SI 2009/470 and postgraduate loan deductions (PGLD) under SI 2016/606.

HMRC collects the amounts of SLD / PGLD deducted by employers from their employees’ pay on behalf of the Student Loans Company (SLC). Employers pay the amounts deducted over to HMRC together with their normal tax and NIC payments. It is HMRC who notifies an employer when to start or stop an SLD / PGLD. Consequently, an employer has no contact with the SLC.

An employer can thus only deal with enquiries from borrowers that concern the actual SLD / PGLD calculation / deduction. The employer, and indeed HMRC, is not privy to the amount of the student loan nor to any balance of the loan outstanding.

SLD and PGLD notifications

Starting SLD / PGLD

A student loan borrower becomes liable to start repaying their student loan from 6 April following completion of their course or leaving their course. An employer engaging someone who has recently left higher education in August / September

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Ian Holloway
Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax


Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

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  • 25 Feb 2025 09:11

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