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HMRC internal manual

Collection of Student Loans Manual

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HM Revenue & Customs
Updated
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SL repayments: borrower within PAYE: student loans business service

The Student Loans Business Service (SLBS) provides computer support for the collection of student loans by HMRC. Much of the IT support works in the background. The Student Loans Business Service

  • Receives borrower information electronically from the Student Loans Company, and

    • Attempts to match a borrower to a known PAYE taxpayer, and employment
    • Notifies the SA computer of SA taxpayers
  • Notifies the Student Loans Company of successful matches
  • Issues a Start Notice to employers following a

    • Successful match on a monthly basis
    • Movement of employment and discrepancies in the FPS information received.
  • Issues a Stop Notice as required, on a weekly basis

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Matching of end of year student loan amounts

The End of Year processes are automated as far as possible. Student Loan deductions are non-cumulative so both End of Year and in year leaver information is passed electronically from NICO to HMRC. An attempt is made to match these automatically to a taxpayer and to a source on the Employments Framework

  • Where an amount of student loans is successfully matched SLBS is notified, and SLBS then

    • Checks that the details refer to a known borrower and that the borrower is liable to make repayments for that year
    • Passes details of failures of one or both checks to a Work List. The Work Lists are reviewed by East Kilbride Student Loans Unit
  • Where an SA return includes Student Loan details, SLBS is notified
  • SLBS in turn notifies the Student Loans Company of Student Loan details for PAYE, SA / PAYE and SA only taxpayers

Note: The PAYE Service is unaffected by this process.

Unmatched amounts for borrowers

Where Student Loan deductions are not matched to a taxpayer and a source on the Employments Framework, SLBS is notified of the details. These are stored in an electronic file known as the Unmatched Pool. SLBS will provide online functions to allow the user to

  • Review the Unmatched Pool

And

  • Manually match the amounts to a taxpayer record and a source on the Employments Framework

East Kilbride Student Loans Unit will carry out this work. SLBS provides them with online functions to

  • Manually link amounts received from NICO for a Student Loan borrower to a known taxpayer and source
  • Unlink incorrectly manually linked amounts received from NICO for a Student Loan borrower
  • Review Student Loan liability periods for an employment
  • Review the Work Lists

If you need more information about the functions available under SLBS select the ‘Index Of Functions’ button to the left of the screen which provides the

  • Purpose of each SLBS function

And

  • Navigation to the function

CSLM4000 provides information on the user role required to access each function.

Work Lists

There are four Work Lists provided in the SLBS. These Work Lists are reviewed by East Kilbride Student Loans Unit.

When a form P14 including a Student Loan deduction is matched to a taxpayer record on the Employments Framework, SLBS will check that

  • The details refer to a known borrower. If not, a work item is created on the ‘Unknown Borrower on SLBS’ Work List
  • The borrower is liable to make repayments for that year (there is not a Student Loan End Date earlier than 6 April in the P14 year shown on the employment record). If not, a work item is created on the ‘P14 Outside Liability Period’ Work List
  • The P14 has been posted against the correct employment reference where there has been an employment transfer in the year. If it has been posted against the old reference, a work item is created on the ‘P14 For Xferred Employment’ Work List
  • When a P14 is expected for an employment for a borrower, but has not been received by the October following the tax year end, a work item for that expected P14 is created on the ‘P14s Expected Not Received’ Work List

The following items will be shown on the Work Lists

  • NINO, Name and Employer Reference, to identify the taxpayer
  • Posting Date and Year of the form P14
  • The Student Loan Amount

East Kilbride Student Loans Unit will also receive a quarterly paper list of forms P14 in the Unmatched Pool that have not been reviewed.

Note: All queries from borrowers relating to P14 Student Loan discrepancies should be referred to East Kilbride Student Loans unit to resolve.