ECH9065 - Open Year Irregularities: Student Loan Deductions (SLDs)

If an employer has failed to make any deductions or has made insufficient deductions you should

• not seek recovery for amounts under-deducted.

The Regulations (see CSLM9020) only require employers to pay to us the smaller of an amount equal to the repayments they

• have deducted, or
• are required to deduct under the Regulations.

Thus if the employer calculates repayments at 4% rather than 9% then that is all that the Regulations require the employer to pay over.

You should

• tell the employer to ensure that the right amount of SLDs
  
  
• • are deducted, and
  • paid over at the right time.

• advise the employer that by making incorrect deductions, they are potentially liable to penalties at the end of the year. See CSLM9030 for more information.