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.
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.
Student loans are implemented automatically by us upon receipt of notification from
HMRC, if a new employee presents a starter P45 with Y in the student loan box or
statement D ticked on the starter P46.
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 the single persons allowance, 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 on our web starter form 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.
I f you are
an existing client, more
information is in the student support page on
our website. This page was last updated
24/01/2010
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