SolvedCSLM9020 | Compliance: employer compliance: employer compliance - legislation
From HM Revenue & Customs · Collection of Student Loans Manual
The primary legislation for income-contingent Student Loans is in the Teaching and Higher Education Act 1998. Secondary legislation, The Education (Student Loans) (Repayment) Regulations 2009, enacted by the Secretary of State for Education and Employment (now Innovation Universities and Skills), empowers HMRC to collect Student and or Postgraduate Loan repayments on the Secretary of State’s behalf and contains the framework for Collection of Student Loans. Part IV of the Regulations covers Deduction of Repayments by Employers.
The table below gives a brief explanation of the regulations under The Education (Student Loans) (Repayment) Regulations 2000 relevant to employer compliance work.
| Section | Explanation |
|---|---|
| Reg 50 | Employer Obligations - Make deductions where a notice received for an employee |
| Reg 52 | Employer Obligations - Record deductions on deduction working sheet for each employee |
| Reg 53 | Employer Obligations - Provide employee with a certificate showing deductions made |
| Reg 54 | Employer Obligations - Pay the amounts deducted to HMRC |
| Reg 59 | Employer Obligations - Make an annual return of loan repayment deductions |
| Reg 61 | HMRC Powers - Inspection of employer’s records |
| Reg 62 | HMRC Powers - Formal determination of repayments payable by employer |
| Reg 63 | Interest and Penalties - Interest payable on deduction made but not paid by 19 April |
| Reg 59(5)&(6) | Interest and Penalties - Failure to make return penalties |
| Reg 59(8)(a)&(b) | Interest and Penalties - Incorrect return penalty |
| Reg 68 | Interest and Penalties - Incorrect deduction penalty |
Note: Under Schedule 36 FA 2008 information powers can be used to obtain documents and particulars from third parties.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)