CSLM17055 – SL repayments: borrower within PAYE: earnings, expenses and benefits
PAYE Income
For Student Loan purposes the definition of earnings that are
subject to deduction by employers is the same as that used for
Class 1 National Insurance Contributions.
The 'golden rule' to adopt when considering whether an item
of earnings, expenses or benefit attracts Student Loan repayments
is
If it is liable to Class 1 NICs then it is also liable to Student Loan repayments
The following table lists many of the payments, either in cash or in kind, that may be made to an employee and indicates whether they should be included as earnings for Student Loan purposes.
| Income
| Yes
| No
|
| Payments to employee (or ex-employee)
|
|
|
| Wages
| Y
|
|
| Overtime
| Y
|
|
| Bonuses and
fees
| Y
|
|
| Pensions
|
| N
|
| Tips paid
directly to employee
|
| N
|
| Tips paid
through employer
| Y
|
|
| Payments made
after death
|
| N
|
| Redundancy
payments
|
| N
|
| Damages for
breach of contract on dismissal
|
| N
|
|
Non-contractual damages for injury at work
|
| N
|
| Contractual
damages for injury at work
| Y
|
|
| Suggestion
scheme awards - non contractual
|
| N
|
| Suggestion
scheme awards - contractual
| Y
|
|
| Travelling
time payments
| Y
|
|
| Statutory
Sick Pay (SSP)
| Y
|
|
| Statutory
Maternity Pay (SMP)
| Y
|
|
| Other
sickness / maternity payments by employer
| Y
|
|
| Dividends
from shares
|
| N
|
| Vouchers
|
|
|
| Meal vouchers
redeemable for food, drink or cash
| Y
|
|
| Meal vouchers
redeemable for food and drink only
| Y
|
|
| Cash payments
for meals
| Y
|
|
| Vouchers
redeemable for goods
| Y
|
|
| Vouchers
redeemable for goods and cash
| Y
|
|
| Transport
vouchers - contract between employer and provider
| Y
|
|
| Transport
vouchers - contract between employee and provider
| Y
|
|
| Christmas
boxes in cash
| Y
|
|
| Other
presents
|
| N
|
| Employees expenses / allowances paid or
re-imbursed
|
|
|
| Uniforms,
protective clothing including cash to purchase
|
| N
|
| Employees
telephone charges - business only
|
| N
|
| Other
telephone charges
| Y
|
|
| Entertainment
allowances
| Y
|
|
| Insurance /
health premiums contract between employer and provider
|
| N
|
| Insurance /
health premiums contract between employee and provider
| Y
|
|
| Travelling /
mileage expenses - non-business / profit element
| Y
|
|
| Qualifying
allowances for re-location
|
| N
|
| Payment /
re-imbursement of employee’s pecuniary liabilities (general)
| Y
|
|
| Payment /
re-imbursement of business expenses
|
| N
|
| Non-specific
round sum expenses payments / allowances
| Y
|
|
| Dispensations
agreed with the Inspector of Taxes
|
| N
|
| Benefits in kind
|
|
|
| All benefits
in kind
|
| N
|
