From 6 April, there are two loan types in operation. Employers will now receive either a Student Loan (SL1) and/or Postgraduate Loan (PGL1) start notice, asking them to start taking deductions.
It is important that the notice is checked for the loan or plan type and that deductions are taken correctly and recorded on the Full Payment Submission (FPS).
If not HMRC will either:
- make contact to request that the employer stops taking deductions under the wring loan or plan type and start taking deductions under the correct one by:
- post through issuing an SL2/PGL2 and SL1/PGL1 or
- Generic Notification Service messages to the employer’s PAYE online account
- ask the employer to stop and refund the incorrect deduction if they are able to.
The Business Tax Account has been updated to show a combined total for both Student Loan and Postgraduate Loan Deductions.