CSLM17040 – SL repayments: borrower within PAYE: end of year

The introduction of the Collection of Student Loans (CSL) scheme has little impact on the existing End of Year

• Obligations on employers

Or

• Procedures in local offices

The main CSL changes to the End of Year processes are as follows

• Forms P14, P35 and P60 have been amended to include columns or boxes for Student Loan deductions

And

• End of Year staff capturing forms P35 have an additional box to review

Employers’ CSL responsibilities at the end of the year

Although in year remittances do not distinguish Student Loan deductions from tax, the employer should

• Maintain a record of all Student Loan deductions made

And

• Show these amounts separately on the End of Year forms

Where Student Loan deductions have been made during the year the employer must enter the amounts on each of the following forms

• P14 - End of Year Summary - ‘Student Loan Deductions in this employment’

• P35 - Summary of Tax and so on deducted - 'Total Student Loan deductions’

• P60 - Certificate of pay and so on deducted - 'Student Loan Deductions in this employment'

The existing time limits for submission of End of Year forms to HMRC remain unaltered.

End of Year processing of form P35

Forms P35 containing an entry in the ‘Student Loans’ box should be logged and captured in exactly the same way as other P35s.

There are two messages which could arise during capture of form P35 if an entry is made in the ‘Student Loans’ box. They are as follows

• An Error message if anything other than numeric characters is entered. The entry must be corrected

And

• An Advisory message if the records show that the employer does not employ student loan borrowers. The entry should only be corrected if this box has been completed in error by HMRC, a detailed review is not expected

Identifying ‘Student Loan’ employers

If an employer employs Student Loan borrowers a Student Loan signal will be visible in

• Function VIEW EMPLOYER INDICATORS in the Employer Business Service (EBS)
• Format 9 of Function VIEW BROCS in EBS
• Format 5 of Function VIEW BROCS in EBS (shows ‘SLOAN’ when signal set and ‘CANSLOAN’ when signal removed)

Discrepancies

The present End of Year processes will not seek to identify discrepancies between entries on the P35 and P14s. Individual End of Year discrepancies will be picked up from the P14s. This work will be carried out by East Kilbride Student Loans Unit. The Student Loans Business Service (SLBS) will provide the computer support to identify and handle End of Year discrepancies. For more information see the subject ‘Student Loans Business Service’ in this section.