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HMRC internal manual

Collection of Student Loans Manual

FAQs: borrowers questions and answers: deductions made in error: I have never been a student

Suggested answer

If you have never attended a course in higher education and have never received an income contingent student loan (loans advanced since August 1998) then clearly you should not be making student loan repayments.

Please let me have details of your employer and I will pursue the matter.

HMRC action

Check with the employer

  • If Student Loan deductions are being made

And, if so

  • Why? (For example a Start Notice or a form P45 with an entry in the Student Loans Box)

If deductions appear to be being made in error

  • Contact the Student Loans Company (SLC), explain the problem, and verify whether the taxpayer is a borrower
  • If the SLC confirm that the employee is not a borrower

    • Tell the employer to ignore the Start Notice or P45 instructions and not to make any further deductions
    • Explain that either a Stop notice or a written notification telling the employer to stop deductions will be issued in due course. This should be filed away with the Start Notice
    • Confirm your instructions in writing and retain a copy of the letter
    • For cases where incorrect or excessive amounts have been deducted under PAYE follow the guidance in CSLM20000 onwards
  • If, exceptionally, the taxpayer is found to be a borrower

    • Tell the employer to continue to make deductions in accordance with the instructions given on the Start Notice
    • Explain the position to the borrower and ask that he / she contacts the Student Loans Company (0300 100 0611) if necessary to pursue the matter. The employer should not phone the Student Loans Company