Written by Paul Chappell
Published on September 3, 2019
student loans

I was surprised when I read that it is not uncommon for employers to continuing to make deductions for student and postgraduate loans long after receipt of stop notices.

Evidently this is quite a frequent occurrence and has prompted HMRC to take action.

From September, HMRC will send out GNS messages to employers who continue to make deductions. The aim is to improve employer compliance and ensure that employers are only taking deductions when it is appropriate to do so.

The messages will be delivered to employers PAYE online accounts. This should make employers take the necessary action to stop the deductions.

If employees think that deductions have been made when stop notices have been issued, they should talk to their employer.

There is no benefit to the employer in making un-necessary deductions. It is in everyone’s interests to ensure deductions are only made at the correct time.

For more details contact Paul Chappell, Head of Legislation and Compliance at Dataplan Payroll Ltd on 03331 123456