CSLM20010 - SL repayments: underpayments and overpayments: incorrect SL and PGL deductions - employer error

This subject applies to Student and or Postgraduate聽Loan deductions made in error, that is, when there was no valid authority to make deductions.

This situation could arise if the employer

  • Applies a Start Notice to the wrong employee
Or
  • Continues to make Student and or Postgraduate聽Loan deductions after a Stop Notice has been received


Error discovered in year and borrower still an employee

If the error is discovered in year (or before the End of Year forms and final remittances have been sent to HMRC) and the borrower is still an employee, the employer should

  • Repay the employee, showing the amount of the repayment as a minus on the employee鈥檚 payslip
And
  • Make any necessary adjustment to the amounts paid to HMRC when the next remittance is sent.聽


Error discovered after the end of the year or after the borrower has left

If the error is discovered after the End of Year forms have been submitted to HMRC, or after the borrower has left this employment, HMRC will make any repayment due direct to the borrower. The employer does not need to take any further action to rectify the error.