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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
, see all updates

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.

You should

  • 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.