½Û×ÓÊÓƵ

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
imgtext

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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
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).

Powered by
  • 25 Feb 2025 09:11

Popular Articles

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more Read more