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

This section applies to Student and or Postgraduate 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 Loan deductions after a Stop Notice has been received

Error discovered in year and borrower still an employee

If employer has received a stop notice from HMRC, the employer should not make any refund. The Student Loans Company will make any refund due direct to the 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’s payslip

And

• Make any necessary adjustment to the amounts paid to HMRC when the next remittance is sent.

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 or the Student Loans Company will make any repayment due direct to the borrower. The employer does not need to take any further action to rectify the error.