CSLM17055 | SL repayments: borrower within PAYE: earnings, expenses and benefits

For Student and or postgraduate loan purposes the definition of earnings that are subject to deduction by employers is the same as that used for Class 1 National Insurance Contributions.

The 'golden rule' to adopt when considering whether an item of earnings, expenses or benefit attracts Student and or postgraduate loan repayments is

If it is liable to Class 1 NICs then it is also liable to Student and or postgraduate loan repayments

The following lists have many of the payments, either in cash or in kind, that may be made to an employee and indicates whether they should be included as earnings for Student and or postgraduate loan purposes.

Income defined as Earnings

Income that is defined as earnings for student and/or postgraduate loan purposes includes the following.

Payments to employee (or ex-employee)

• Wages

• Overtime

• Bonuses and Fees

• Tips paid through employer

• Contractual damages for injury at work

• Suggestion scheme awards – contractual

• Travelling time payments

• Statutory Sick Pay (SSP)

• Statutory Maternity Pay (SMP)

• Other sickness / maternity payments by employer

Vouchers

• Meal vouchers redeemable for food, drink or cash

• Meal vouchers redeemable for food and drink only

• Cash payments for meals

• Vouchers redeemable for goods

• Vouchers redeemable for goods and cash

• Transport vouchers - contract between employer and provider

• Transport vouchers - contract between employee and provider

• Christmas boxes in cash

Employees expenses / allowances paid or reimbursed

• Other telephone charges

• Entertainment allowances

• Insurance / health premiums contract between employee and provider

• Travelling / mileage expenses - non-business / profit element

• Payment / re-imbursement of employee’s pecuniary liabilities (general)

• Non-specific round sum expenses payments / allowances

Benefits In Kind

• All benefits in kind that are subject to Class 1 NICs

Income not defined as Earnings

Income that is not considered earnings for student and/or postgraduate loan purposes includes the following.

Payments to employee (or ex-employee)

• Pensions

• Tips paid directly to employee

• Payments made after death

• Redundancy Payments

• Damages for breach of contract on dismissal

• Non-contractual damages for injuries at work

• Suggestion scheme awards – non contractual

• Dividends from shares

Vouchers

• Other presents

Employees expenses / allowances paid or reimbursed

• Uniforms, protective clothing including cash to purchase

• Employees telephone charges - business only

• Insurance / health premiums contract between employer and provider

• Qualifying allowances for re-location

• Payment / re-imbursement of business expenses

• Dispensations agreed with the Inspector of Taxes

Benefits In Kind

• All benefits in kind that are not subject to Class 1 NICs