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HMRC internal manual

Collection of Student Loans Manual

HM Revenue & Customs
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FAQs: employers questions and answers: what income is included for SL purposes?

Suggested answer

For student loan purposes only include earnings as you would calculate for employer’s secondary Class 1 NIC purposes.

This will exclude most benefits in kind. Full details of the treatment of benefits for NICs purposes are given in the booklet CWG2 - Employer’s Further Guide to PAYE and NICs, which is available from the HMRC website.

HMRC action



1. The golden rule is ‘If it is liable to NICs it is also liable to Student Loan deductions’.
2. This applies not only to what income should be included but also applies to queries concerning earnings periods. For more information see CSLM17055.