Employers should apply Student Loan deductions if:
Your new employee starter checklist shows they should be repaying a student loan
Your employee’s P45 shows deductions should continue
You receive a Student Loan Start Notice (SL1) from us.
They must be applied from the first available pay date and shown on your full payment submission (FPS) to HMRC.
There are two Student Loan repayment plans (Plan 1 or Plan 2) and these should be shown on the notifications above. If not, please ask your employee as it’s important deductions are taken from the correct plan.
You will receive a new form SL1 should the plan change.
You can find more information about plan types, thresholds and the Generic Notification Service (GNS) on GOV.UK.
If you need support in managing your business finances please contact one of our financial advisers today on 0115 97844664