FAQs: borrowers questions and answers: can employer charge for making deductions?
No. The legislation does not provide for a charge to be made by the employer on anemployee for making the deductions.
If your employer disputes this please ask him to contact HMRC.
None, unless the employer follows this up.
Note: The employer is allowed to make a charge for certain other deductions, for example, some Court Orders. This does not extend to Student Loans.