Student and postgraduate loan deductions

Produced by Tolley in association with

Employment Tax

Guidance

HMRC is responsible for the collection of student loan deductions (SLD) under SI 2009/470 and postgraduate loan deductions (PGLD) under SI 2016/606.

HMRC collects the amounts of SLD / PGLD deducted by employers from their employees’ pay on behalf of the Student Loans Company (SLC). Employers pay the amounts deducted over to HMRC together with their normal tax and NIC payments. It is HMRC who notifies an employer when to start or stop an SLD / PGLD. Consequently, an employer has no contact with the SLC.

An employer can thus only deal with enquiries from borrowers that concern the actual SLD / PGLD calculation / deduction. The employer, and indeed HMRC, is not privy to the amount of the student loan nor to any balance of the loan outstanding.

SLD and PGLD notifications

Starting SLD / PGLD

A student loan borrower becomes liable to start repaying their student loan from 6 April following completion of their course or leaving their course. An employer engaging someone who has recently left higher education in August / September

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