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CSLM10123 | FAQs: employers questions and answers: what if I include benefits in the payroll?

From HM Revenue & Customs · Collection of Student Loans Manual

Suggested answer

If you have a voluntary arrangement with HMRC, whereby the cash equivalent of benefits in kind is included in the payroll then the figure of gross pay may not be the amount of earnings for Student Loan and Postgradaute Loan (PGL) purposes. (Benefits in kind are not normally taken into account in calculating earnings for Student Loan and or PGL deductions).

It is essential that the employee is aware of the amount of earnings upon which Student Loan and or PGL deductions have been calculated. You must therefore provide your employee, (if Student Loan and or PGL deductions have been made), with a breakdown of the earnings figure shown on the form P60.

Further information is available in the Employer Booklet CWG2, which is available from the HMRC website.

HMRC action

For more information see CSLM17055.