Student loan and loan that is postgraduate guidance for employers

Stopping education loan and PGL deductions

Stop student that is making or PGL deductions whenever:

SL2 or PGL2 ‘Stop Notice’ received

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

In the event that debtor continues to be used you use Basic PAYE Tools for this employee edit the employee details in the employer database by you and. 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 you and you have actually perhaps not submitted leaver details to HMRC:

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

    You can’t stop deductions that are making your worker asks one to. Your worker should contact the SLC they have overpaid their loan if they think.

    Worker dies

    Usually do not make any deductions from any re re payments made after a member of staff dies since these payments aren’t at the mercy of Class 1 National Insurance efforts. This is applicable although the re payment may relate genuinely to a period of time just before death, as an example, unpaid wages.

    Worker leaves

    Whenever a worker makes, verify that you’re making education loan or PGL deductions.

    When you yourself have gotten:

    In the event that you receive either:

  • fill in P45 box that is leaving 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 really need to ignore profits through the other boss.

    In the event that worker has one or more work to you proceed with the aggregate rules when they use. Otherwise treat both employments individually.

    Change of pay period

    In the event that period between your re re payments of a employee’s profits modifications, as an example, from weekly to monthly, you will need to adjust the deductions when it comes to new profits duration.

    For those who have included a repayment currently manufactured in the initial associated with new longer durations, you need to simply take the payment already made, as well as the deduction resolved upon it, under consideration when working out of the student loan or PGL deduction for the brand new duration all together.


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

    You’ll find extra information about what to complete in the event that period involving the re re payment of a employee’s profits alterations in Chapter hands down the help guide to PAYE and National Insurance efforts.

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

    Mistakes deducting education loan or PGL repayments

    Present income tax 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 company Helpline.

    If there’s been an under-deduction and you may gather it through the debtor within the present income tax 12 months you ought to do this. Correct your Year-To-Date payroll documents to mirror that which was really deducted.

    It phone the Employer Helpline if you cannot collect.

    During each period it is possible to just 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 following a above rules.