CSLM9020 - Compliance: employer compliance: employer compliance - legislation

The primary legislation for income-contingent Student Loans is in the Teaching and Higher Education Act 1998. Secondary legislation, The Education (Student Loans) (Repayment) Regulations 2009, enacted by the Secretary of State for Education and Employment (now Innovation Universities and Skills), empowers HMRC to collect Student and or Postgraduate Loan repayments on the Secretary of State’s behalf and contains the framework for Collection of Student Loans. Part IV of the Regulations covers Deduction of Repayments by Employers.

The table below gives a brief explanation of the regulations under The Education (Student Loans) (Repayment) Regulations 2000 relevant to employer compliance work.

Section	Explanation
Reg 50	Employer Obligations - Make deductions where a notice received for an employee
Reg 52	Employer Obligations - Record deductions on deduction working sheet for each employee
Reg 53	Employer Obligations - Provide employee with a certificate showing deductions made
Reg 54	Employer Obligations - Pay the amounts deducted to HMRC
Reg 59	Employer Obligations - Make an annual return of loan repayment deductions
Reg 61	HMRC Powers - Inspection of employer’s records
Reg 62	HMRC Powers - Formal determination of repayments payable by employer
Reg 63	Interest and Penalties - Interest payable on deduction made but not paid by 19 April
Reg 59(5)&(6)	Interest and Penalties - Failure to make return penalties
Reg 59(8)(a)&(b)	Interest and Penalties - Incorrect return penalty
Reg 68	Interest and Penalties - Incorrect deduction penalty

Note: Under Schedule 36 FA 2008 information powers can be used to obtain documents and particulars from third parties.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)