Student Loans
Student loans are part of a Government's financial support
package for Students carrying out a course of higher education in
the United Kingdom, enabling them to meet their expenses.
Legislation
From April 6 2000, legislation came into force requiring employers to deduct student loan repayments from employees who become liable to repay their loan, along with deductions of tax and NIC. This will only apply to loans taken out after August 1998. Each month, the deduction will be shown on the payslip.
The amount deducted is paid over to the Revenue along with the Tax and NI due for the same pay period. Employers must continue to make deductions each pay day until the total has been reached, the employee leaves or a stop notice SL2 has been received.
Employing Students During The Holidays
If students earn more than £5,435,
they are liable for tax so they may as well be processed through the
payroll and given
form P46 to sign. All you need to do is to submit joiner forms for them as you
would for normal employees.
If the student is working during the university or school holidays only, choose tax code NT from the tax code dropdown list and tell us the name of their University or School. We will post you form P38s when the payroll is run or you can download and use form P38s. The Revenue no longer require the actual P38s but we still need to print one for your records.
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This page was last updated 21/04/2008
