CSLM9001 - Compliance: employer compliance: introduction

From April 2000 HMRC became responsible under The Education (Student Loans) (Repayment) Regulations 2000 for collecting repayments in respect of income-contingent Student Loans, on behalf of the Department for Innovation Universities & Skills (DIUS).

For borrowers who receive earnings liable to Class 1 NIC, Student Loan repayment deductions are made by employers when earnings exceed the annual threshold.

Employers account to HMRC for these deductions using the PAYE system.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Detailed guidance on the responsibilities of the employer, including deductions and record keeping is contained in CSLM2030 and in the section CSLM17000.

Borrowers who receive an SA return have to self-assess their loan repayments, including any earnings that have been subject to repayment deductions by their employer. Guidance on Student Loan compliance in SA cases and the borrower’s obligations are covered in the section CSLM8000.