CSLM17030 - SL repayments: borrower within PAYE: maintaining records

The Collection of Student Loans scheme does not introduce any new forms for completion by the employer, although the employer will receive new forms and guidance material from HMRC.

In addition, changes have been made to existing forms to accommodate Student and or postgraduate loans. The employer will only have to make additional entries on these forms if completing a manual payroll and a borrower is employed.

Most employers will now use either specialised payroll software or (for employers with 9 or fewer employees) will use the HMRC Basic PAYE Tools software, both of which will calculate and record the deductions automatically.

Forms

These forms have been introduced that will affect employers. Brief details of their use are given below.

  • Form SL1 and PGL1 - Start Notice - issued automatically to the employer when a borrower is identified and matched with the PAYE database
  • Form SL2 and PGL2 - Stop Notice - issued automatically to an employer when deduction of Student and or postgraduate loan Repayments have to cease
  • Form SL3 - Student Loan Deduction Tables - These are available from the HMRC website at

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Existing forms

Amendments have been made to the following existing forms to enable the employer to handle the Collection of Student Loans scheme

  • P30B - Payslip
  • The employer lumps Student and or postgraduate loan deductions with tax deducted during the period
  • P32 - Employer’s Payment Record - ‘Student and or Postgraduate Loan Deductions’
  • Employer enters, in the box headed ‘Student Loan Deductions’, the amount of Student Loan deductions made during the period and included in each payment to HMRC. (Whole pounds only)
  • Employer enters, in the box headed ‘Postgraduate Loan Deductions’, the amount of Postgraduate Loan deductions made during the period and included in each payment to HMRC. (Whole pounds only)
  • P45 - Employee Leaving Details - ‘Student Loan Deductions to continue’
  • Employer completes box headed ‘Enter Y if Student Loan deduction is due to be made’ if form SL1 or PGL1 received but no form SL2 or PGL2 received (whether or not deductions have actually been made)
  • P60 - Certificate of pay and tax and so on deducted - ‘Student Loan and or Postgraduate Loan Deductions in this employment’
  • Employer enters the total amount of Student and or postgraduate Loan deductions in this employment
  • Wages slip - Various designs
  • Whatever design is used the employer must show Student and or postgraduate Loan deductions separate from other deductions made from pay