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CSLM10066 | FAQs: employers questions and answers: start notice held - t/p working abroad

From HM Revenue & Customs · Collection of Student Loans Manual

Suggested answer

If you are deducting NICs from the employee’s salary then Student Loan and or Postgraduate Loan deductions will also be due and you should start making deductions in accordance with the instructionsgiven on the Start Notice.

If no NICs are deducted from earnings then do not make Student Loan and or Postgraduate Loan deductions.

HMRC action

None

Notes:

  1. For the purposes of Student Loan and or Postgraduate Loan deductions, the legislation states that for Student Loans and or postgraduate Loan purposes the employer uses ‘… emoluments …’ as they are for the purposes of the Contributions Regulations

  2. It follows that if Class I NICs are not due then nor are Student Loan and or Postgradaute Loan deductions. This extends beyond this scenario and is particularly relevant in the areas of expenses and benefits