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HMRC internal manual

Collection of Student Loans Manual

FAQs: employers questions and answers: employee leaves: t/p has left but I'm making a further payment

Suggested answer

Make Student Loan deductions in the normal way.

Your payroll software will use the earnings figure as you would calculate for employer’s secondary Class 1A NICs to determine the pay figure for Student Loan purposes. Provide a certificate to your ex-employee detailing the deductions that have been made.

HMRC action



1. Student Loan deductions as calculated above should be made on all payments made to an ex-employee provided that Class 1 NICs are also deducted.
2. If an employee has died then payments made after death will not be subject to Student Loan deductions.