CSLM10112 | FAQs: employers questions and answers: do I deduct a fixed amount?

Suggested answer

Deductions will vary depending on how much the employee earns. Deductions are rounded down, at the end of the calculation, to the nearest whole pound.

The deductions are non-cumulative and calculated on the current pay period only.

Your payroll software should take account of this and calculate the student loan deduction for you.

The current thresholds can be found on gov.uk website.

Your employee will tell you which plan type they are repaying. If they

• do not know this then they can log on to their online student loan account or access gov.uk website for more information

• have both a student loan and postgraduate loan (PGL), they may be liable to repay both PGL and either Plan 1, 2, 4 or 5 at the same time.

HMRC action

None.