Supporting Guidance: employer compliance: guidance by subject: open year inaccuracies: student loan deductions (SLDs)
If an employer has failed to make any deductions or has made insufficient deductions you should
- not seek recovery for amounts under-deducted.
The Regulations (see CSLM9020) only require employers to pay to us the smaller of an amount equal to the repayments they
- have deducted, or
- are required to deduct under the Regulations.
Thus if the employer calculates repayments at 4% rather than 9% then that is all that the Regulations require the employer to pay over.
tell the employer to ensure that the right amount of SLDs
- are deducted, and
- paid over at the right time.
advise the employer that by making incorrect deductions, they are potentially liable to penalties at the end of the year. See CSLM9030 for more information.