This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Employment Income Manual

Particular benefits: student loans: paid by employer or written off

Student loans

Employers may incentivise employees who have outstanding student loans, by undertaking to repay or write off all or part of the employee’s student loan.

Employer makes the loan repayment

An employer may undertake to repay an employee’s outstanding student loan. Typically the employer will arrange to meet the annual repayments due on the loan in order to incentivise the employee to remain in that employment.

If an employer pays the repayments due from the employee, this represents the meeting of the employee’s pecuniary liability, chargeable as earnings under section 62 ITEPA 2003. See EIM00580.