Home - Payroll News
- Recent HR News
- FREE Newsletter
- Payroll and HR FAQs
- Payroll Forum
- Payroll Calendars
- Payroll Tools
- Monthly Brain Teaser
- The Authors
- About Us
- Contact us
Students
Student Loan Threshold 2013 / 14
Monday, August 6th, 2012In an informal note from HMRC’s Software Developer Support Team (SDST), developers have been advised that the Student loan threshold for 2013/14 is to be set at £16,365. This is an increase in the sum of £570.00 on the current threshold of £15,795.00. This informal note is based upon information which they have been provided [...]
Early Repayment of Student Loans
Thursday, April 5th, 2012As we have reported, the Government issued a consultation in 2011 concerning proposals to penalise students whose circumstances allow them to repay their loans early. The existing repayment rules for student loans allow any student, at any time, to pay more than is required under their loan agreement. The Government’s reforms to the financing of [...]
Student Loan Early Repayment Charge to be ‘Postponed’
Saturday, February 18th, 2012The Government issued a consultation last year concerning proposals to penalise students whose circumstances allow them to repay their loans early. The existing repayment rules for student loans allow any student, at any time, to pay more than is required under their loan agreement. The Government’s reforms to the financing of higher education involve: applying [...]
Student Loan Threshold
Saturday, December 17th, 2011The Government’s intention is to increase the repayment threshold from £15,000 to £21,000 in April 2016, the date when most students who commence a three-year degree course in September 2012 will first become liable to make repayments. Although we have mentioned this before in our Newsletter, Regulations are now in force which: Increase the Student [...]
Unexpected student loan notices
Friday, September 23rd, 2011Employer procedures on receiving inappropriate SL1 start notices. The following is an extract from the latest weekly informal update (dated 16 September) from HMRC to employer representatives. HMRC is starting a programme of work to align employer and employment information held on our systems. Specifically within the Collection of Student Loans environment: Those employers who have employees [...]
Consultation on early repayment of student loans
Sunday, July 3rd, 2011The Government proposes to penalise students whose circumstances allow them to repay their loans early. The existing repayment rules for student loans allow any student, at any time, to pay more than is required under their loan agreement. This may be possible, for example, because the borrower obtains a high-paying job and voluntarily repays more, [...]
Student loan deduction threshold increase from April 2012
Thursday, May 26th, 2011Retail Prices Index in March 2011 is used to increase the £15,000 threshold from April 2012. The current £15,000 annual threshold for student loan deductions through the payroll was due for review by the last Government in 2011. The Coalition government decided instead to increase the threshold annually between 2012 and 2016 in line with [...]
Student Loan Deduction Threshold
Thursday, March 24th, 2011The current £15,000 annual threshold for student loan deductions through the payroll was due for review by the last Government in 2011. The Coalition government decided instead to increase the threshold annually between 2012 and 2016 in line with inflation. The statutory changes for this have been made by means of amendments to the Education [...]
Increase to the student loan deduction threshold from 2012
Friday, January 21st, 2011The Government’s reforms to higher education and student finance include proposals to increase the annual earnings threshold above which students are required to have their loans recovered by payroll deduction. The 9% repayment rate will not change, and all outstanding loans will be written off after 30 years. The current £15,000 threshold was due for [...]
Employed students and the accommodation offset
Friday, January 21st, 2011The national minimum wage (NMW) rules allow employers who provide accommodation for workers to include it, up to a specified limit, as a benefit in kind towards payment of the NMW. The current limit is £4.61 per day, or £32.37 for a full week. On 18 January, the Department for Business, Innovation and Skills (BIS) [...]
Consultation on PAYE Real Time Information proposals
Friday, December 10th, 2010HMRC received nearly 400 responses to the discussion document Improving the Operation of Pay As You Earn (PAYE) that was published last July. Nearly three-quarters of respondents who expressed a view were in favour of the Real Time Information (RTI) proposal and the Government has taken the decision to introduce it in stages from 2012. [...]
For how many years must we keep our payroll records?
Friday, December 10th, 2010Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to “keep and preserve” their “PAYE records”, other than those that have to be sent to HMRC, for a period of not less than three years following the tax year to which they relate. Put another way, employers must keep the [...]
Tax code changes for employees paying 50% tax from April 2011
Wednesday, October 6th, 2010Tax code D1: When the new 50% Additional rate of tax was introduced in April 2010, HMRC announced that its systems were unable, at that time, to handle a tax code D1 for the employees affected. For the 2010/11 tax code, the correct liabilities for 50% tax payers will be assessed after the year end. [...]
When and how are the P38(S) procedures used for student employees?
Monday, September 13th, 2010Special tax provisions are made for students who are employed only during their between-term holidays, including UK nationals who are studying abroad and who return to the UK to work during their holidays. If the student does not produce a P45 and the requirements (as described below) are met, the employer must provide form P38(S) [...]
How are tax and NICs handled for part-time workers?
Friday, September 3rd, 2010Part-time workers must be treated as all other regular employees. They should be asked for a P45 when they start and, if they cannot provide one, the P46 procedures must be followed. However, one administrative concession applies which, if used, requires the employer to follow a special procedure at the year end. If a part-time [...]
Special tax rules for full time students
Thursday, August 12th, 2010It’s the holiday season and you may be thinking of employing a student solely during their summer, winter or Easter holidays. If this is the case then you may be able to pay them without deducting PAYE tax. To pay a student without deducting PAYE tax, the student needs to fill in the declaration on [...]
Students Working During Holidays – HMRC change of mind on procedures requiring a new tax code
Wednesday, April 7th, 2010Following extensive consultation during 2008, HMRC announced that new procedures would be introduced from April 2011 for simplifying the current P38(S) procedures for students earning less than the personal allowance during a tax year. The new procedures would have involved the introduction of a special tax code that would only deduct tax once earnings exceeded [...]
Student and Form P38S – HMRC press release gives tax guidance for students
Wednesday, September 9th, 2009A press release issued by HMRC on 2 September provides guidance to students on the procedures that allow them to be paid without having tax deducted if they earn less than the personal tax allowance during the 2009/10 tax year. One aspect of the guidance conflicts, however, with the published employer procedures. In the context [...]
PAYE Procedures for Students – Initial information about changes from April 2011
Wednesday, July 15th, 2009In March 2008, HMRC published a consultation document entitled Modernising PAYE Processes for Students. It addressed concerns that, as a result of changing student work patterns, the P38(S) procedures may no longer address the needs of most working students. In particular only about 20% of students earn enough in a tax year to pay tax [...]
Pre-Budget 2008 Budget 2009 – four months early!
Monday, December 1st, 2008The Chancellor of the Exchequer, Alistair Darling, presented his Pre-Budget Report to Parliament on 24 November 2008. Many of the increases to tax and NICs rates and thresholds are linked to the annual increase in the Retail Priced Index at September 2008, i.e. 5.0%. The Government anticipates that the RPI in September 2009 will be [...]
