CSLM10123 - FAQs: employers questions and answers: what if I include benefits in the payroll?
If you have a voluntary arrangement with HMRC, whereby the cash equivalent of benefits in kind is included in the payroll then the figure of gross pay may not be the amount of earnings for Student Loan purposes. (Benefits in kind are not normally taken into account in calculating earnings for Student Loan deductions).
It is essential that the employee is aware of the amount of earnings upon which Student Loan deductions have been calculated. You must therefore provide your employee, (if Student Loan deductions have been made), with a breakdown of the earnings figure shown on the form P60.
Further information is available in the Employer Booklet CWG2, which is available from the HMRC website.
For more information see CSLM17055.