FAQs: employers questions and answers: stop notice: t/p has repaid loan. can I stop deductions?
No. Continue to make deductions until you receive a Stop Notice or are asked specifically to stop making deductions by your Tax Office.
Tell your employee to contact the Student Loans Company(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (0300 100 0611), to discuss the position. If the loan has been repaid you will be told to stop making deductions.
None, unless the Student Loans Company ask you in writing to contact the employer and instruct him to stop making deductions. If this happens
- Tell the employer to stop making deductions immediately
- Confirm the instruction in writing
|1.||Information held by the Student Loans Company in respect of repayments made by borrowers is inevitably out of date because, in PAYE cases, they can only be updated when the end of year returns are made|
|2.||Stop Notices will normally be issued automatically when the Student Loans Company estimate that the loan will be paid off. This is based on the pattern of previous payments and income. There will obviously be cases where a loan may be paid off before a Stop Notice is issued|
|3.||The employer should never be told to phone the Student Loans Company. They will deal only with the borrower|
|4.||The Student Loans Company will handle any over - deduction of loan repayments|