CSLM17060 – SL repayments: borrower within PAYE: using the student loans deduction tables

The Student Loan Deduction Tables, (Form SL3), were issued to all employers with the Employers' Pack for the year 2000/2001. Thereafter they are available on the Employer CD-ROM or from the Employer’s Orderline on 08457 646 646.

The Tables handle the majority of cases, where the borrower is paid either weekly or monthly.

Detailed guidance is also given in the Student Loan Deduction Tables where the

• Borrower’s level of earnings are in excess of the highest amounts shown in the tables

Or

• Pay periods are other than weekly or monthly

Computing Student Loan deduction where earnings for a week or month exceed the highest amount of earnings shown in the tables

Instructions on what action to take in these circumstances are given in the Student Loan Deduction tables.

The following action should be taken by the employer

1. Deduct the pay period threshold from total earnings for the week or month
   
   

2. Multiply the result of Step 1, (the excess) by the rate in force
   
   
3. If the result at Step 2 includes an amount of pence, round down to the nearest pound
   
   
4. Record the amount of the Student Loan deduction on the borrower’s Deductions Working Sheet, form P11
   
   

The examples below assume that the annual threshold is £15,000 and the rate is 9 per cent.

Example - Weekly paid borrower

Earnings in week £1,200

1. Determine excess

2. Multiply excess £911.54 by 9 per cent = £82.03
   
   
3. Round down result of step 2 = £82 = Student Loan deduction
   
   

Example - Monthly paid borrower

Earnings in month £6,055

1. Determine excess

2. Multiply excess £4805 by 9 per cent = £432.45
   
   
3. Round down result of step 2 = £432 = Student Loan deduction
   
   

Note: See CSLM18000 onwards for more information on rounding down when a Priority Order applies.